**1. Introduction**

Managing risks is essential for organisations to survive and, thus, part of everyday business activities. Traditionally, business managers were responsible for managing risks individually on a decentralised basis [1]. Enterprise Risk Management (ERM) takes a broader perspective. To inform strategic decision-making, ERM integrates all company risks into a coordinated framework [2].

An online survey conducted by the thought leader *NC State ERM Initiative* shows that the number of companies with a complete, formal ERM increased from a singledigit percentage in 2009 to 35 per cent in 2020 [3]. However, the same survey shows that only 28 per cent of respondents consider their risk management mature or robust, and only one-third perceive their approach to risk management as valuable for strategic decision-making.

Consequently, in a survey of financial firms conducted by Deloitte [4], two-thirds of respondents consider the infusion of risk management into strategy and better cooperation between risk management and business units as having high priority. Business units must accept and support the ERM unit and processes to achieve these

objectives. However, Deloitte identified these specific aspects as a critical challenge. Similarly, KPMG [5] determined in a study of non-financial firms that context-rich discussions between the ERM unit and business leaders, particularly engaging top management, remain persistent obstacles.

Overcoming these challenges is essential for effective ERM. Risk communication, creating risk awareness and culture, and gaining commitment from top management are the critical success factors when integrating ERM into decision-making processes [6]. According to Maitlis [7], increasing the acceptance of ERM units is achieved by constructing and promoting understanding by decision-makers. The extent to which risk practitioners play a leadership role in business activities and how they communicate is therefore decisive for ERM effectiveness.

This relationship is reflected in competency frameworks increasingly emphasising the relevance of risk practitioners' communication and leadership skills. Oliver Wyman [8] recognises that the ability to influence people in risk culture and top-level strategic decision-making is becoming a core competency for risk practitioners. The Institute of Risk Management (IRM), a professional body for risk management, similarly emphasises risk professionals' influence, collaboration, and relationship management capabilities [9].

Apart from a few case studies describing risk practitioners' communication practices in a company-specific context [10–13], little is known about how ERM practitioners use communication and leadership to overcome the stated challenges. In response to these gaps in the literature, this research aims to explore risk practitioners' practices to achieve ERM effectiveness, notably communication and leadership practices. It poses the following question: *What are effective communication and leadership practices of risk practitioners to achieve and maintain the effectiveness of organisational ERM?*

The notion that ERM effectiveness is achievable and maintainable acknowledges that risk is a perception influenced by the social and physical environment [14]. Organisations construct and continually reconstruct the meaning of their environment [15]. This sensemaking process is influenced by risk practitioners, who are themselves sensemakers ongoingly affecting sensemaking as members of the organisation [14]. Organisational sensemaking imposes challenges on risk practitioners that they can overcome through leadership and communication.

The research is delimited to Germany to essentially factor out multiple countryspecific risk management regulations and socio-cultural variations. It contributes to an enhanced understanding of the means available for risk practitioners to increase ERM effectiveness. Further, the study extends the literature on critical success factors for risk practitioners' communication and leadership practices.

The remainder of this chapter is organised into five sections. The following section discusses the relevant literature, drawing on risk management studies and wider managerial research. The third section describes the research methods. Results are presented in the fourth section and discussed using theoretical frameworks in the fifth section. The final section concludes this research.
