152k views
2 votes
Why might the organizational status quo lead to resistance to ERM implementation?

User Ametren
by
8.0k points

1 Answer

5 votes

Final answer:

The organizational status quo can lead to resistance to Enterprise Risk Management (ERM) implementation for several reasons. Firstly, it disrupts established routines and requires individuals to adopt new ways of working. Secondly, ERM involves embracing uncertainty, which can be uncomfortable for those who prefer stability. Lastly, resistance can stem from the organizational culture and leadership style.

Step-by-step explanation:

The organizational status quo can lead to resistance to Enterprise Risk Management (ERM) implementation for several reasons. Firstly, the status quo often represents the current practices and processes that employees are familiar with and comfortable in. Introducing ERM can disrupt these established routines and require individuals to adapt to new ways of working, which can create resistance. Additionally, the status quo may be associated with a lack of accountability and avoidance of change. People may be reluctant to implement ERM as it requires taking ownership of risks and making changes to existing systems.

Secondly, resistance to ERM implementation can stem from a fear of the unknown. Implementing ERM involves embracing uncertainty and taking proactive measures to identify, assess, and manage potential risks. This can be challenging and uncomfortable for individuals who prefer stability and predictability.

Lastly, the organizational culture and leadership style can contribute to resistance. If the culture emphasizes hierarchy and control, employees may resist ERM implementation as it requires a collaborative and inclusive approach. Additionally, if leadership does not actively support or promote ERM, employees may view it as an unnecessary burden.

User Ihor Klimov
by
7.4k points