reasons why risk management practices might not take off and or be embedded effectively in an investee company
Discussion 1
There are some reasons why risk management practices might not take off and or be embedded effectively in an investee company. Some of these reasons are lack of required resources, inadequate of the employees, poor communication, and poor organizational culture. This will affect the operations of the investee company when there is no outlined and planned risks management practices. Lack of training or inadequate training will lead to the failure of risk management and will not take off embedded effectively in an investee company. The second reasons are lack of adequate resources will result in not taking off and integrate effectively in an investee company. It will make the process of risk management practices in ensuring that risk management practices ought not to take off and be embedded effectively in an investee company.
The people who should participate in the ERM process to ensure successful implementation of this ongoing program are, chief risk officer, chief financial officer, chief legal officer, and chief audit executive. In the investee company, these kinds of people should ensure that they take part in providing that they ensure implement ERM in the ongoing program successfully. These people would consider and use the critical factors to ensure that the process of the ERM process ensures successful implementation of the current program. These critical factors are training programs, risks management culture, and sufficient resources.
CEOs’ role for the successful implementation and ongoing performance of an ERM process includes guiding and munging the process, supplying resources, funds, offering training to the junior employees to avoid the risk, and maintaining good organizational culture. They will manage the whole process and guide people on how they should implemental the ERM and ensure that they offer the best services.