July 18, 2011
ERM Looks to Create Value
ERM Can More than Justify Its Existence
The Corporate ERM Group convened May 11-12 for its fourth annual meeting in New York. Topics at the day and half meeting included deep dives into one company’s fairly new ERM program. Other topics included:
1) Creating Value at the Business Units. BUs generally have a positive perception of ERM but mostly believe it only adds “moderate value.”
Key Takeaway: Some members are re-defining the ERM value proposition for the BUs and establishing risk management as a leadership capability.
2) Board Reporting and Risk Metrics. Boards of directors for member companies have a high level of interest in ERM even though it tends to be low on numbers and high on qualitative data.
Key Takeaway: It can be a tricky balance of how much detail to give the board and how much feedback to get from them.
3) Aligning ERM with Strategy and Planning. Nearly 75 percent of respondents are either “moderately” or “very” aligned with the strategy team
Key Takeaway: The alignment between ERM and strategy can be successful in breaking down silos and improving overall enterprise performance.
4) Effective Trends for ERM Development. Companies continually face the challenge of spreading the word on ERM.
Key Takeaway: Further embedding ERM into the operations of the business remains a top trend.
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