Systemic Enterprise Risk Management (SERM)
Traditional software based ERM compliant with outdated risk management standards are part of the problem, not the solution.
They institutionalise poor risk management thinking and practices, and create false confidence.
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The SERM Framework provides leaders with a robust, structured approach for dealing with all kinds of risk including those that are complex and or systemic.
It can be stand-alone or it can be overlaid on an existing ERM framework to enable better strategic-systemic risk insights and decisions.
What the SERM Framework is – and what it does
SERM is risk management reinvented for a world where complexity, constant change and uncertainty are routine. It fills the gap in risk management thinking and practice created because risk ‘standards’ such as ISO31000 are ineffective for today’s world.
The SERM Framework provides leaders with an implementable structure of processes and skills for working in uncertainty, suitable for all levels of complexity. The framework includes practical models, processes and tools for risk inquiry, analysis and response.
The benefits
With the SERM Framework in place:
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leaders experience fewer avoidable failures and crises.
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risk responses are more whole, integrated, purpose focused.
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risk culture can transform to become more positive, less risk averse, less silo’d.
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better risk inquiry and analysis creates new insights and hence new options and opportunities for action.
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risk management red tape is reduced
Implementing the SERM Framework is straightforward if supported by strong risk leadership.
SERM Supporting Tools and Methods
Existing (traditional) risk processes and methods for risk inquiry, analysis and response are ineffective when dealing with complex, inter-connected or emergent risks.
For that reason, the SERM Framework includes a suite of enhanced, practical risk management methods and tools that enable systemic risk work leading to new insights for leaders making decisions.
Some of these methods and tools are illustrated below.
Holistic Risk Review (HRR) Process
The Holistic Risk Review (HRR) process bridges the gap between traditional risk management processes and systems thinking. It provides structure and consistency without losing the ability to work on complex risks.
Risk Mapping
Develop a rich understanding of complex, dynamic, intangible risks.
Create powerful, open conversations, new insights, shared understanding and effective responses to risk.
Holistic Risk Workshop Process
The holistic risk workshop process takes participants on a journey of multiple perspectives. Its focus is on effective inquiry and discovery, collecting insights for later collation and reporting in appropriate formats
Risk Relationship Matrix
Analyse the nature and impact of inter-relationships between risks. Identify points of leverage and optimise the response to risk as a whole.
Risk Capability Model
Many interrelated factors influence how well we work when facing uncertainty and complexity. The Risk Capability Model provides a complex perspective that helps leaders to focus their capability building effort.
Systemic Risk Analysis
Working from first principles, find the root causes of organisation risk and the blockers of performance. Support strong leadership by finding, understanding and resolving the hidden “cans of worms”.
Decision Inquiry Support Process
The Decision Insights Support Process moves the focus of risk work from managing threats, to providing powerful, timely systemic insights to decision makers
Systemic Risk Response Register
Demonstrate the link between key sources of risk and the actions being taken to manage risk as a whole. Use this as a catalyst for strategic risk conversations.
Essential Capabilities Mapping
Mapping essential capabilities provides a powerful start point for quick risk assessments and also for systems design work. Identifying “necessary and sufficient” capabilities is critical business building work.
Systemic Bowtie
This enhanced Bowtie risk analysis method recognises complex risks and their interrelationships, to provide wholistic risk management responses.
