Putting defined governance structures in place is foundational for an effective ERM program. It not only helps to ensure that ERM has the appropriate roles, responsibilities, oversight, and management structures in place, but also helps to drive broader participation in ERM to make governance more seamless. Drawing from the results of APQC’s recent Evolving Practices in Risk Management research, this article highlights common governance structures, including:
- the core ERM team,
- executive champions; and
- embedded ERM business partners.
We also provide examples of how leading organizations drive buy-in for ERM both from the top-down and bottom-up.