“Good decision making” sounds a lot like business jargon; it is. However, it is an important concept when considering situations that can have long-term impacts on a company. It should be incumbent upon all decision makers to consider the consequences their actions have on the entire company they are engaged with. I have identified five characteristics that I believe are essential when making critical decisions in an Enterprise Risk Management setting.

Profit/Goal-Driven Characteristics

• • Decision Maker is highly reliable and consistent on what the company’s risk tolerance is. As a leader and a decision maker, it is important that everyone has an idea of what amount of risk the company is comfortable with. For example, some companies are risk takers, while others are more conservative in their risk appetite.

• • Decision Maker is open-minded about solutions for messy decisions, but does not violate company or government guidelines. Also, considering different scenarios or outcomes can improve your decision.

• • Decision Maker understands that one cannot “eliminate” the messy situation, but rather must work around it and find innovative solutions. Risk can never be removed entirely; that is why insurance exists!

Colleague/People-Focused Characteristics

• • Decision Maker communicates plans/decisions well and on a regular basis with colleagues. An uninhibited flow of information and easy access to it is important to make sure everyone is on the same page.

• • Decision Maker empowers colleagues to work together and innovate together rather than just delegate duties. Facilitating discussions, or providing a “Constructive Environment,” allows all stakeholders to have a say in the process and contribute different ideas to make the best decision.

Engaging Stakeholders to make an informed decision