HOW Do We Conduct Enterprise Risk Management?

According to the fourteenth principle of risk management, the more a person practises risk management, the more risks he/she is willing to take due to a feeling of security. Similarly the more an organisation practises risk management, the greater its risk appetite. The enterprise risk management (ERM) programme builds confidence to take risks, which comes from knowing as opposed to not knowing. In fact pretending that risk is always beneficial or denying that risk does not exist can lead to the failure of an enterprise faster than any risk. The checklist for implementing risk management includes risk identification, risk management, risk monitoring, and high-level planning. Murphy's Law still exists despite the best planning, anticipating and analysis. The key element is to hone employees' recovery skills on small lapses. A risk management programme requires employees at every level who make decisions and take action to let the leader know when something is going wrong.