Effective Risk Management (ERM) 

The Ubaya Master of Management study program once again invited a guest lecturer from the USA, namely Prof. Yashwant V. Pathak, M.Pharm., MBA, MSCM, Ph.D. who talked about risk management in organizations. This event was organized by the Ubaya Postgraduate Leadership Club (LC) themed “Effective Risk Management (ERM) for organizations: Understanding the Terms and Effective Ways to ERM”. This activity took place online on Sunday, 7 November 2021, from 8 to 10 a.m. The event was opened by Mr. Adi Prasetyo Tedjakusuma, B.Bus., M.Com., as moderator, then followed by Prof. Yashwant V. Pathak, M.Pharm., MBA, MSCM, Ph.D. thought on risk management.

Prof. Pathak explained that ERM is a continuous improvement process to identify, assess, reduce, monitor, and communicate major risks to advance the mission and strategic goals of the organization. According to Prof Pathak, ERM activities in organizations are to provide a comprehensive program that proactively manages a portfolio of what leaders collectively believe to be the most critical risks to the achievement of the organization’s mission and goals. ERM has several objectives, including identifying and assessing various risks that can have a negative impact on the achievement of institutional goals and objectives, ensuring proper ownership and accountability of risks, developing and implementing appropriate risk mitigation and monitoring plans by risk owners, establishing program structures involving functional leaders across the organization to identify and prioritize risks, and providing senior leadership with critical information to make risk-informed decisions and to allocate resources effectively.

At the conclusion of the guest lecture session, Prof. Pathak advised organizations to break down their risks to list potential risks in a project and organize them according to the level of detail, with the highest level of risk at the top and the more detailed risk at the bottom. These visuals will help organizations and their members anticipate where risks may arise when determining tasks for a project. Once the organizations have gathered possible issues, it is necessary to create a project risk log for clear and concise risk tracking and monitoring across the entire project.

After attending this guest lecture, let’s do risk management in our organization. Moreover, in the future, the business will become very turbulent and if the organization is not ready, there can be risks for our organization.