ERM program acceptance at critical mass point this year: RIMS

Acceptance of enterprise risk management programs has reached the critical mass stage, according to a new survey from RIMS.

More than 60% of respondents included in the organization’s survey have fully or partially implemented ERM programs, according to its report, based on responses from more than 1,000 risk professionals as a follow-up to similar surveys in 2009 and 2011.

Still, few respondents call their programs fully mature, with 60% characterizing their programs as ad hoc or in the initial stages. Of those without a full or partial ERM program, about 20% are in the process or are planning to look into an ERM program within the next year, according to the report.

“Board directive” was the No. 1 program driver, followed by “risk manager” and “regulatory requirements.”

In terms of value, respondents cited increased risk awareness within the organization as the main benefit. Avoiding and mitigating risk was next, followed by “increase certainty in meeting strategic and operational objectives.”

Of the functions playing the most active role in the ERM process, consistent with the 2011 results, legal, internal audit and compliance were most often cited, according to RIMS.

“Although many organizations are still in the infancy of ERM implementation, it is clear that ERM, and the role of the risk professional has become a valued part of corporate culture and business practices,” said RIMS Director of Strategic & Enterprise Risk Practice, Carol Fox.  

“Risk professionals act as motivators and, as they continue to take primary responsibility for directing ERM activities, RIMS will continue to provide them with the resources they need to implement this flourishing risk management discipline.”

The full report is available as a free download from RIMS.