Inspired by the book “Enterprise Risk Management in Europe”, Edited by Marco Maffeic
What is it about? It is about the implementation of ERM in organizations in Europe. This is accompanied by a number of obstacles. So there are pitfalls in the implementation of ERM in Europe.
The practice-oriented definition of risk management that is used is as follows:
“Risk management consists of active and intrusive processes that:
- Are capable of challenging existing assumptions about the world within and outside the organization;
- Communicate risk information with the use of distinct tools (such as risk maps, stress tests, and scenarios);
- Collectively address gaps in the control of risks that other control functions (such as internal audit and other boundary controls) leave unaddressed; and in doing so
- Complement – but do not displace – existing management control practices.”
This book does a study on that. Each of the first 13 chapters are about the situation in a country. This is followed by two reflective chapters about the countries. The countries concerned are: France, Germany, Greece, Italy, Lithuania, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
Finally, in a number of hierarchies, a summary is given in an academic way.
But what seems really important to me are the identified lessons from which insight comes into what can be the cause of ERM going wrong.
The identified lessons that tell why ERM can go wrong are listed in the accompanying excel sheet. This can be used as a kind of attention list for the (further) expansion of ERM.