Chapters 26 through 29 presented four mini-case studies on ERM and risk. Each one presented a slightly different risk scenario. Starting with chapter 29, assume that you have been asked to advise the Akawini management team on how they should promote and monitor the transformation of risk management in their business. What performance measures would you recommend that use so that they can monitor progress and performance? Choose one other of the chapters from this week and recommend ERM measures that organization should implement as well to monitor risks outlined in that chapter. To complete this assignment, you must do the following: A) Create a new thread. As indicated above,assume that you have been asked to advise the Akawini (chapter 29) management team on how they should promote and monitor the transformation of risk management in their business. What performance measures would you recommend that use so that they can monitor progress and performance? Choose one other of the chapters from this week and recommend ERM measures that organization should implement as well to monitor risks outlined in that chapter. Total –  800 words

Advancing risk management practices within an organization requires effective monitoring and measurement of progress and performance. For the Akawini management team, there are several performance measures that can be recommended to effectively track the transformation of risk management in their business.

First and foremost, the team should establish clear objectives and key performance indicators (KPIs) that align with their risk management goals. These KPIs could include metrics such as the number of risk assessments conducted, the percentage of identified risks that have mitigation plans in place, or the frequency and timeliness of risk reporting to senior management. By defining these KPIs, the management team can establish a baseline and track improvements over time.

Another important performance measure is the engagement and involvement of employees in the risk management process. This can be assessed through surveys or feedback mechanisms that gauge employee perception of risk awareness and the effectiveness of risk mitigation strategies. Regularly measuring employee engagement in risk management activities can provide valuable insights into the success of the transformation efforts.

Additionally, the management team should monitor the cost-effectiveness of their risk management practices. This can be achieved by measuring the cost of risk incidents, such as insurance premiums, claims, or financial losses, and comparing it to the cost of implementing risk mitigation measures. This analysis can help identify areas where investments in risk management are providing a significant return and areas where resources may be misallocated.

Furthermore, the management team should consider qualitative measures, such as the level of risk culture and awareness within the organization. This can be assessed through interviews or surveys that capture the attitudes and behaviors of employees towards risk. By regularly measuring risk culture, the management team can identify areas for improvement and tailor their communication and training efforts accordingly.

As for the second chapter to consider, Chapter 26 discussed the risk associated with supply chain disruptions. To monitor the risks outlined in this chapter, the organization should implement specific ERM measures.

One important measure is the establishment of a supply chain risk monitoring system. This system should track key indicators such as supplier performance, lead time variability, and supply chain disruptions. It should also include mechanisms for early warning signs, such as monitoring geopolitical events or tracking industry trends that may impact the supply chain. Regular reporting on these indicators can help the organization identify potential risks and take proactive measures to mitigate them.

Additionally, the organization should implement a supplier risk assessment process. This process should involve regular evaluations of suppliers against predetermined criteria, such as financial stability, quality management systems, and business continuity plans. The assessment should also consider the geographic diversification of suppliers to reduce the concentration of risk. By monitoring the performance and risk profile of suppliers, the organization can ensure that their supply chain is resilient and can effectively respond to disruptions.

In conclusion, promoting and monitoring the transformation of risk management requires the use of appropriate performance measures. For the Akawini management team, measures such as clear objectives and KPIs, employee engagement, cost-effectiveness, and risk culture can help track progress and performance. Additionally, for organizations facing supply chain risks, implementing measures such as supply chain risk monitoring systems and supplier risk assessments can effectively monitor and mitigate those risks.