Risk messaging is the fourth step in the ERM process cycle, and has two components:
- Internal Risk Messaging
Internal risk messaging consists of two components:
- Integrate ERM into business performance analysis
- Integrate ERM into incentive compensation
SimErgy will help integrate ERM information into your organization’s business performance analysis; this includes implementing a technique that corrects a critical flaw in balanced scorecards that may be inhibiting your organization’s performance.
SimErgy will also help you integrate ERM into incentive compensation. This will encourage more favorable risk-return decision making. In addition, this can help prevent the need for extensive SEC disclosures regarding risky compensation plans.
- External Risk Messaging
External risk messaging involves integrating ERM information into external disclosures to shareholders, stock analysts, rating agencies, and regulators. SimErgy will help your organization determine the most advantageous risk disclosures, provide tools and techniques for enhanced communications with stock analysts, and help develop communications to support ERM reviews by rating agencies, particularly Standard & Poor’s.