Alex Sidorenko from RISK-ACADEMY talks about three things to review when auditing risk management effectiveness in non-financial companies:
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HI Alex,
I agree with this … except, that if you audit (and you can) and find that risk management on #2 and #3 are well done, you are highly likely to perform well on #1 as well. The add-on value you have in #1 is the effect of an Enterprise Risk Management which is focused on identifying and effectively addressing new risks imposed from outside the company – assuming everything that happens within the company is covered by your risk managed decision making.
In short …
Decision focused risk management ensures decisions are optimized and well executed
Enterprise Risk Management drives decisions to be made based on [external] events or developments
Seems a bit over complicating. Decision focused risk management covers anything and everything to do with decisions, hence with doing business. We could stop there, but we have auditors and regulators who think they know better. So ERM must be satisfying whatever next bs they come up with.