ERM, Continuity + Future-Ready
An overview of what each of these programs are and their variations
Enterprise Risk Management program
According to RIMS.org, an ERM program is about “delivering an expansive view of the organization and its risks, as well as adding significant value to strategy and executive decision-making”.
For a little deeper look you can read our following article:
Always according to RIMS.org, a variation or an augmentation of ERM is SERM or Strategic and Enterprise Risk Management which is a merger of ERM and SRM (Strategic Risk Management).
SRM is a business discipline that drives deliberation and action regarding uncertainties and untapped opportunities that affect an organization’s strategy and its execution. SRM represents an important evolution in enterprise risk management, based on many guiding principles including how it can drive value by specifying the foundation and approach for creating, capturing and protecting an organization’s value, while serving as a source of competitive advantage.
It is generally understood that a business continuity plan (BCP) is “a system of prevention and recovery” from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster”. (Source: Investopedia)
In the cntext of disruption and uncertainty, a continuity program would take the form of a strategy designed to insure that an organization will conitnue and stay relevant in the future. This objective of continuity and relevance in the future is the main purpose of foresight and the use of our solutions.
Future readiness is usually based on a prospective approach and is a way for organizations and its leaders to adapt to rapid changes and disruptions, develop the necessary relevant internal capabilities and find new growth opportunities. It provides a great sense of purpose and direction that has direct impacts of the way that business is conducted every day. A foresight or prospective apporach is a visionnary approach to the future (futures as we call them).
Future-readiness can also be viewed from a manager or manegerial aspect of future-readiness more so the the visionnary point of view offered by a prospective approach to future-readiness. The managerial side of future-readiness are proposed as scores and indicators.
I – The Future Readiness Score
The Future-Readines Score (FRS) was developed by Ian Khan to help organizations understand where they stand with respect to business readiness in 8 key areas of business impact in the future. The FRS is a scientifically-backed research-based methodology developed to help understand key measures of success for the organization and to help identify metrics that will make you more ready for a disruptive, technology-driven future. The score includes what they identified as 8 key areas, namely: (1) Commitment (2) Learning (3) The people (4) Accountability (5) Collaboration (6) Value creation (7) Execution and (8) Technology.
Source: Ian Khan website
II – The Future Readiness Indicator
The IMD (International Institute for Management Development) introduced the Future Readiness Indicator to measure how prepared businesses are for a changing future. Industry rankings go beyond leadership assessments and business performance analysis and are instead based on seven main factors. These factors are: (1) Financial Fundamentals (2) Investor expectations for future growth (3) Business diversity (4) Employee diversity (5) Research and development (6) First results of innovation efforts and (7) Cash and Debt.
Source: IMD website
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Space intentionally left for the future.