Enterprise risk management adoption is on the rise in the United States, with 33% of organizations now claiming to have complete ERM processes in place, according to The 2022 State of Risk Oversight: An Overview of Enterprise Risk Management Practices from the American Institute of CPAs and North Carolina State University’s Enterprise Risk Management Initiative. While ERM adoption is up from just 9% when the survey was first conducted 13 years ago, there is still considerable room for risk professionals to boost their role as a strategic partner. According to respondents, less than 20% of organizations believe their risk management processes provide strategic advantage. With the exception of financial services, where ERM programs are more prevalent, most organizations are not emphasizing risk exposure considerations when management evaluates strategic initiatives or makes capital allocations.
“It is our hope that the ongoing uncertainties and rapidly changing business environment will convince more executives of the strategic importance of having rich insights about risks facing the organization as they make key strategic decisions,” said Mark Beasley, professor of accounting and director of the ERM Initiative at NC State.