Aon survey finds most global companies still lack integrated ERM strategy
Even as government regulators and corporate stakeholders demand companies do more to address and mitigate enterprise-wide risks, only one in 10 companies in the Americas and Europe has fully integrated an enterprise risk management (ERM) strategy, according to Aon Global Risk Consulting‘s survey of global ERM practices.
At the heart of ERM is a comprehensive understanding of the global risks facing an organisation, the design of strategies to mitigate those risks and the building of a corporate culture focused on risk management.
Fully 83% of respondents say they are reasonably familiar or very familiar with ERM and its implementation and purpose, but significant challenges still exist when organisations set out to execute an ERM strategy.
Meanwhile, while many companies are taking an enterprise-wide look at their risks, only one in four organisations say that developing ERM programs is part of their strategic planning process.
Aon Global Risk Consulting identified corporate culture, strategy and resources as the three key elements of successful ERM programmes, based on feedback from chief risk officers, risk managers and other senior executives surveyed from among the world’s largest firms.
“Companies need clear and consistent ERM frameworks in place to appropriately assess and respond to the collective risks that may impact their organisations today,” said Stephen Cross, chief executive officer of Aon Global Risk Consulting. “ERM provides the insight investors, management, ratings agencies and other stakeholders need to fully assess a company's risk profile."