Secret System to Reduce Costs of What You Don't Know in Your Business

You can start by thinking of ERM as someone asking you "what is the cost of what you do not know in your business?".

After reflecting for a moment, how can you spotlight and highlight understand the 3 to 5 key business risks you may be taking? You may not know you are taking these risks or not understand the significance of those risks. For example, the executive on the 12th Floor thinks they know what is occurring on the 8th floor. Often they do not.

In this world where layers of management and huge numbers of employees have been fired or their work outsourced, people have very limited time and do the best they can. Historical accounting systems that may have been adequate in the past when operated by experienced people who have developed gut feel and awareness to sends problems while there is still time to react may have developed new holes or risks.

Add on siloed departments, inadequate operational reporting systems and a rapidly accelerating world and much more risk is being taken than the Board of Directors, CEO and C-suite officers know is being taken

Enterprise Risk Management (ERM) has elements of contingency planning, due diligence, operational assessments and even facilitated strategic planning sessions, in its roots. Almost all executives say their company should be using ERM. And then you learn that almost none actually have an effective ERM system.

On a score of 1 to a 100, with 70 being a passing score, what is the score you and others would give on the effectiveness of your ERM system? If you did not pass, do some research on risk management fast.

With 70 being the C minus score in school, how do you move from the self graded score you gave yourself? How can you increase that score at least a little and preferably a lot?

The journey of a thousand miles begins with a single step. Congratulations on starting a risk assessment process. By actually starting or moving forward with the inexpensive practical steps above, many companies find they have actually started on the road toward risk management or improved the process they had in place.
Bottom line? - What is the cost of what you do not know in your business?

Stop Profit Leaks Now. Apply this information to improve your profitability, reengineer business models, and strengthen or gain competitive advantage in the marketplace to check companies vital signs and diagnose problems before unpleasant side effects show up on their balance sheets.

Benefit from his extensive C-level experience in accounting, IT, sales, management, manufacturing and HR to work writing, speaking and consulting on enterprise risk assessment (ERM), risk analysis, corporate governance, and the bottom line impact of going green.

The FiscalDoctor corporate checkup helps you identify internal problems from inventory mismanagement, outdated and incomplete financial reports, and false accounting assumptions to external forces like misreading the market, losing competitive advantage and missing golden opportunities.

(Expert=Gary_W_Patterson)

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