Current Issue

The word is out-enterprise risk management really does work. A refreshing report issued recently by Aon states that more companies are employing mature ERM practices to maintain and grow profitability and resiliency. The report, "Global Enterprise Risk Management Survey," states that 62% of survey respondents identify themselves as having progressed beyond basic ERM practices, compared with 38% of those surveyed in 2007. Though many companies have faced significant financial challenges since 2007, those companies in the more mature stages of ERM reported success in increasing shareholder value, reducing the cost of risk and increasing operational efficiency. "When risk managers truly understand risk and use that information to enhance the organization's overall risk intelligence, they are able to make decisions more in line with their firm's strategic plan, operating plan and external environment," said Laura Taylor, global leader of enterprise risk management for Aon Global Risk Consulting. "Our report illustrates how these advanced organizations are able to move beyond focusing on risk avoidance and mitigation and toward leveraging risk to drive sustainable growth, continuity and profitability." It seems the days of the ERM naysayers may be long gone.
Emily Holbrook is the founder of Red Label Writing, LLC, a writing, editing and content strategy firm catering to insurance and risk management businesses and publications, and a former editor of Risk Management.