CFO Talk: The Key Elements for Enterprise Risk Management with John Thackeray
In this episode of CFO Talk Steve interviews John Thackeray, an expert in risk management.
John kicks off this episode by describing the 3 key benefits of Enterprise Risk Management (ERM) before jumping into the the seven key elements of effective ERM: business objectives and strategy, risk appetite, culture, governance, and taxonomy, data and delivery, internal controls, measurements and evaluation, and scenario planning. Thackeray highlights the importance of understanding the benefits of ERM, such as alignment, benchmarking, and visibility. He explains that risk appetite refers to the amount of risk an organization is willing to accept in pursuit of its financial performance and strategy.
Thackeray emphasizes the need for education and communication to ensure the management team is aligned on risk appetite and capacity. He also highlights that strategy plays a crucial role in determining risk appetite and suggests that open discussions and iterative processes can help achieve a common understanding of risk among company leaders.
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