The Association for Federal Enterprise Risk Management (AFERM) produces a weekly podcast called Risk Chats that focuses on Enterprise Risk Management in the federal space. Host Paul Marshall gathers insight from some of the most recognized Chief Risk Officers and Risk Management professionals.
Marshall recently interviewed Sim Segal, the Academic Director of the M.S. in Enterprise Risk Management program at Columbia University’s School of Professional Studies. Segal talked about the premises of his paper "National Risk Management: A Practical ERM Approach for Federal Governments."
“This paper presents a value-based approach to ERM and discusses how federal governments can use it to support risk-reward decision making at the highest levels of government and increase the chances of achieving critical national goals,” Segal said.
He explains how value-based ERM provides a key link between risk and reward using a robust and practical approach that is easier to implement and maintain than the current ERM methods that are widely used.
The paper provides step-by-step procedures for federal governments on how to adopt this approach. The first three sections introduce and define the topic. Sections 4-7 discuss the approach and walks through each of the four ERM process cycle stages. Section 8 describes how the ERM program can be maintained once it is implemented. The last two sections present comments on the role of a national chief risk officer (NCRO) and some positive trends in national risk management.