Closing the Gap Between Risk and Reward: 7 Steps to Master Enterprise Risk Management and Governance

Risk is inherent in any business. Successful businesses don’t avoid risks entirely; they manage them by striking a balance between risk and reward. Today, the stakes have never been higher, and with the increasingly complex global market, mastering enterprise risk and governance is essential.

This article outlines 7 steps to help you excel in enterprise risk management (ERM) and governance. Whether your aim is to safeguard your assets, innovate with confidence or drive sustainable growth, these strategies will equip you with the tools to achieve your goal.

1. Understand the Fundamentals of Risk Management

Risk management encompasses assessment, identification, planning, implementation, reporting and monitoring. Experts in organizational risk analyze risks to determine which could impact long-term growth. They are well-versed in generally accepted risk management standards.

2. Invest in Comprehensive Education

While one-off workshops offer basic knowledge, risk management certifications provide comprehensive training. Schulich ExecEd’s Masters Certificate in Enterprise Risk Management and Governance prepares mid-career and senior leaders for risk leadership roles, featuring a flexible structure that allows participants to complete the program in 9 days over 6 months.

3. Develop Analytical Skills

Effective risk mitigation relies on a strong understanding of analytical tools. Risk managers interpret complex data accurately to make informed, strategic decisions. This process involves not only analyzing available information but also identifying and addressing data gaps. Further research is often needed to fill these gaps, ensuring that risk mitigation strategies are tailored to specific challenges and opportunities.

4. Master Risk Implementation

Risk management involves implementing frameworks with guidelines for identifying and managing risks, along with knowledge of best practices. It requires continuous monitoring and adaptation to address new and evolving risks, ensuring organizational resilience. Effective communication and stakeholder engagement are also essential for alignment and commitment to the processes.

5. Enhance Communication and Leadership

Communication skills are critical for risk management leaders, who must confidently make recommendations to key stakeholders. Risk managers should foster a culture of risk awareness and proactive management, leveraging the organization’s communication channels to update employees on identified risks and listening to feedback on mitigation strategies.

6. Embrace Practical Risk Applications

While knowledge of mitigation and risk governance is essential, applying that training to real-world scenarios is critical. Mastery of risk management and governance requires collaboration with other executives to make strategic decisions that align with the organization’s long-term strategy.

7. Build a Strong Professional Network

The best managers in risk management and governance have a wide network of peers and leaders across various industries. They leverage their professional network to stay informed about risk trends and develop diverse perspectives on risk management.

A Career in Enterprise Risk Management and Governance

Schulich ExecEd’s Masters Certificate in Enterprise Risk Management and Governance provides you with the tools to become an expert in organizational risk, helping you stand out from the crowd. Talk to a Schulich ExecEd advisor today to learn more about the program!