ERM - Enterprise Risk Management: Issues and Cases

5 Communicate and Consult

Communication is an essential element in all aspects of risk management. While it is considered a step in the ERM framework it is one that is articulated with all phases of the risk management process. Without good communication that is relevant to the stakeholder, the understanding of issues and solutions may be muddled, leading to disastrous results. The second important piece of this step of the risk management process is consultation. The risk manager is an internal consultant and coach. The job of the risk manager includes helping those without technical experience in risk management to acquire the expertise necessary for risk owners and others to accomplish their risk optimization goals and objectives.

5.1 COMMUNICATION AS A RISK MITIGATION TOOL

Jean-Paul Louisot

Formerly Université Paris 1 Panthéon-Sorbonne, Directeur pédagogique du CARM Institute, Paris, France

5.1.1 Risks Perception and Reality: Communication of Risks

Risk management, both as a profession and as a discipline, has experienced an accelerated pace of evolution since the beginning of the twenty-first century due to the sudden request for additional “security” in all stakeholders segments. Physical security was brought to high priority since the terrorist attacks in the USA on 9/11/01 and maintained thereafter by the repeats in Madrid and London. It seems that since the tsunamis at the end of 2004, natural disasters have increased in visibility, if not in frequency and intensity, ...