Risk Management (August 01, 2009)

ADOPTION OF ERM PLATEAUS

The adoption of enterprise risk management (ERM) seems to have reached a plateau at 65% of firms, according to a joint Marsh and Risk and Insurance Management Society report.

In the sixth annual Excellence in Risk Management VI: Strategic Risk Management in Practice, 450 risk managers were surveyed during 2009 Q1 about the impact of the financial crisis on their risk management programs and strategies.

Sixty-seven per cent of businesses reported plans to adopt a more strategic approach to risk management, of which ERM is generally seen as a component.

“While the movement toward partial implementation of ERM may now be somewhat related to current economic conditions, it’s more likely that many risk managers view partial implementation of ERM as a step along the way,” said Richard Roberts, a member of the RIMS board of directors.