Enterprise Risk Management and Health
Traditionally, business risks were identified separately in risk areas or silos. For example, insurance risks were handled by the Finance Department, market risks handled by the Sales or Marketing Department, employee ill health handled by Human Resources with referral to Occupational Health. Workplace hazards are handled by Health and Safety professionals.
The risks faced by organisations were addressed at the departmental level, but various departments defined risks differently, resulting in a fragmented approach to risk management. Risks also tended to be noticed reactively – after the event – meaning that the enterprise could find itself applying damage limitation measures.
Increasing attention is now being paid to good corporate governance. The growing accountability of the Board of Directors for the safety of staff and operations has identified the need for a holistic, inclusive approach to protecting and promoting the organization, using ethical practices known as Enterprise Risk Management.
Enterprise Risk Management elevates the fragmented risk process to one of board level concern. Where the human resources manager is appointed to the board, this creates a stronger, more influencial role for business risks relating to people.
Miller Health plays a key role in linking health with Enterprise Risk Management.