Risk Management Surveys

/ May 6th, 2010/ Posted in How to Implement ERM / No Comments »

Enterprise risk management is greatly helped by knowing how to do a risk assessment that obtains high quality results. I really think this is a key answer to difficulties reported in recent risk management surveys, and the best way to develop a culture that uses evidence-based and risk-optimized decision-making.

On my other site I’ve discussed the results of several risk management surveys 2008-2009, in an Introductory Presentation. It’s a veritable crisis, because many organizations don’t have confidence in their risk identification process, and implementation is often a dry compliance exercise. I’ve outlined a recommended approach in these posts:

The January 2010 Aon Global Enterprise Risk Management Survey (free download) reports improvement in overall ERM program maturity among 201 respondents, compared to results of three years ago (p.3). But is it the same target group? – 320 organizations participated in 2007. Selection bias would I think invalidate their conclusion. Anyway, the “hallmarks of top performing enterprise risk management programs” (p.3) are interesting even if only as exploratory research.

Well, 40% of this year’s respondents report “lack of tangible benefits” as an ERM implementation barrier; while lack of “skills and capability to embed ERM” (34%) and no “clear implementation plan” (28%) are also at fault (page 13).

In my next post I will give an example of a successful enterprise risk management plan. Comprehensive and rigorous risk ID and assessment are at the heart of it.

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