“The performance benefits of a timely risk response stand out clearly,” said Ms. Riley. “There’s a business opportunity here because ERM leaders expressed their desire to be more involved in supporting strategic initiative success.”
Seventy six percent of ERM heads said they wanted to increase the proportion of their time they spend on strategic initiatives. More than half said that their involvement should come at the earliest stages of a strategic initiative. Yet currently just 11% feel they are involved before an initiative’s execution.
“The problem we often see is initiative teams are not getting the information they need to act on risks in a timely manner,” said Ms. Riley. “This is one area where ERM teams can add value.”
This can have several root causes. Sometimes many individuals are involved in an initiative without clear accountability to one another. There is also often a sensitivity to candidly sharing information about threats to high stakes projects. Another common cause is a focus on performance metrics that overshadows forward-looking considerations.
“ERM’s role should be to connect initiative teams with subject matter experts, to facilitate opportunities for anonymous sharing of concerns, and to develop risk indicators that consider leading indicators of project success,” said Ms. Riley.
Gartner clients can access the full research in Managing Risks to Strategy Execution: Equip the Business to Sense and Respond.
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About the Gartner Risk Management Leadership Council
Senior executives need actionable information to make quick decisions. Successful organizations embed risk management into strategic decision-making processes to help the business execute on its growth priorities. Gartner Risk Management Leadership Council equips enterprise risk management leaders with insights, advice and tools to better navigate high-risk growth decisions. More information can be found at: https://www.gartner.com/en/audit-risk.