Risks often shape the way an organization operates. It is an integral part of the business and cannot be overlooked or resolved once and for all. You can witness its significance in diverse fields, be it healthcare, housing, or technology. Different management divisions allocate various methods and models to make their risk management strategies as effective as possible. In an interview conducted by NC State Poole College of Management, Rick Moyer gets in conversation with Don Pagach, Chief Risk Officer at Standford University. In the interview, Pagach discusses the feasibility of combining ERM, compliance, and audit to improve risk management strategies.
A One-Stop Solution
Pagach mentions that his job responsibility is quite broad in its fundamental sense. He has to oversee the risk probability associated with the housing, healthcare, and management company that is a part of Stanford University. Pagach states that his job is close to a chief risk officer’s operation. To effectively monitor risk management in an enterprise, it is essential to combine audit, ethics, compliance, and the risk management insurance function together. The risk management team can share information on these different fronts and work collaboratively to ensure better results. Additionally, experts believe that adding information security to the list also helps analyze the business’s statistical and data-driven aspects.
Manage the Boundaries
There might be instances when ERM, audit, or information security might obstruct each other because their end goals might be different. To resolve that, the divisional heads must directly connect with the leaders and heads of other divisions. It might increase the chances of debates and arguments. But if mediated professionally, these activities can lead to a transparent work environment. To get a measurable result, leaders should periodically conduct a quality review assessment to help the team cohesively prioritize different divisions. It is important for the team to manage the objectivity of different divisions and collectively manage them.
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