Sixty-two percent of survey respondents identify themselves as having progressed beyond basic ERM practices compared with 38 percent of those surveyed in 2007, a clear indication that companies are integrating risk management processes beyond senior management and developing more transparent relationships with key stakeholders like shareholders, customers, vendors and employees. The number of respondents with advanced ERM programs has more then doubled during the same period from 3 percent to 7 percent. These results point to the fact that ERM is being used to drive bottom line results.
Organizations in the more mature stages of ERM report they are able to realize significant benefits in areas such as enhancing shareholder value, optimizing and reducing total cost of risk, strengthening business resiliency and increasing operational efficiency - encouraging news in light of the financial challenges many of these companies have faced since the 2007 report.
"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 toward leveraging risk to drive sustainable growth, continuity and profitability."