The interview was held between Bruce Branson and Laurie Brooks. The first question that Bruce asked was the difference between ERM and the other types of risk management undertakings. Laurie responded by bringing out the fact that ERM more often than not attempts to collect the available information about various activities, analyzing them and looking for the connections and concentrations of risk. This will assist the top management in allocating resources and prioritizing them for the sake of managing the risks that the company could face. ERM analyzes the risks by developing a detailed understanding of the company’s strategies and missions.
On the second question, Bruce highlighted that most of the organizations think about risk on two fronts, namely, the probability of a risk from occurring and the probable impact the risk has on the organization. The question directed at Laurie was to bring out her thoughts concerning these additional dimensions. He further asked whether they add value or make the process more complicated. Laurie Brooks responded by stating that these dimensions are crucial because of little knowledge about probability from a mathematical point of view. This was a common phenomenon in the West culture. She further states that despite the probability, activity and velocity metrics also have the same effect.
The third question was about the techniques that might help the organizations manage the number of risks that could be initially identified adequately. She answered by pointing out the fact that it is the duty of the senior management to apply top down and bottom up approaches. Bottom up approach will ensure that the emerging risks that have not even reached the top management have been identified. Because the top management is more conversant with the latest strategic plans and objectives of the firm, they are in a superior position to identify the risks that might affect these strategies. The management should also look for the small risks being fought independently from different fronts.
Work Cited
Erm.ncsu.edu,. 'How ERM Differs From Traditional Risk Management? - ERM - Enterprise Risk Management Initiative | North Carolina State Poole College Of Management'. N.p., 2011. Web. 25 Nov. 2014.
