The Path to ERM Success
May 12, 2011 Leave a comment
The path to success in implementing an Enterprise Risk Management (”ERM”) program can be found in greater integration and better technology – that’s according to a recent survey presented at the 2011 Risk and Insurance Management Society (”RIMS”) Conference in Vancouver, British Columbia. Entitled “Excellence in Risk Management VIII”, this is an annual independent survey of executives conducted for RIMS by Marsh. The most common focus area noted in the survey is a desire to strengthen enterprise or strategic risk management approaches. While more than half of the survey respondents indicated this desire, a majority saw the primary barrier to achieving this goal was a lack of understanding of the risk landscape across numerous silos of information.
As a result, 55% of the respondents expect to integrate risk management deeper into and across operations and 54% of respondents expect to perform day-to-day risk management activities more efficiently. To meet these expectations, organizations will need to improve the way they gather and report risk data through more cost-effective technology. The survey report supports this notion through the following observation. “It’s worth noting to risk managers that their counterparts in the C-suite were the most likely to view technology upgrades as a focus area. This should help pave the way for technology that can ease the time spent on mundane tasks and open the door to developing the deeper integration of risk management with other departments.”