This AGA guide seeks to answer questions about: why ERM, how to integrate ERM into an agency’s culture and ways of doing business, and the value of ERM.
The guide is organized as follows:
- Section I introduces ERM.
- Section II discusses the design options for adding ERM to an agency’s processes. There is no one-size-fits-all. Rather, ERM can be viewed as a management tool that, to provide its benefits, requires a good organizational home and integration into other agency processes such as strategic planning, budgeting, and decision making.
- Section III offers approaches to establishing the ERM function. ERM depends on widespread understanding of its benefits, and this section discusses how that can be achieved in an agency.
- Section IV discusses the implementation of ERM and how all organizational components – agency managers and staff, the CRO, the risk committeerisk management committee, and especially agency leaders – fit together to make ERM a beneficial reality rather than merely an empty compliance exercise.
- Finally, Section V concludes with observations about why ERM is such a powerful tool and how it differs from more traditional management approaches.