Strategic Risk Management

CHAPTER 8

SRM for the Long Term: Culture, Communication, Ethics, and Integrity

This chapter describes two critical elements for making strategic risk management a sustainable and value-creating business process: alignment with organizational culture, and communication systems that integrate SRM into the core work of the strategy complex and the organization. The 7-S model, pioneered by McKinsey and Company, provides a useful framework for thinking about alignment, and we introduce our final tool, the Strategic Risk Reporting Matrix, to help SRM teams communicate with the board and other C-level executives. Organizational integrity is the final key element that must be in place for SRM programs to work.

September 7, 1979, had been a picturesque, ...