Articles

  • Using Collaboration Risk Management to Recognize Emerging Risks

    March 01, 2013

    PricewaterhouseCooper recently published a research paper on systemic risk trends. The authors of the paper shed light on the many issues related to the risk mitigation capabilities of businesses for minimizing the effect of systemic, or emerging, risk. As a result, they also found the similarities of strategies that successful companies use to thrive through major adverse events. The authors proffer that companies must integrate emerging risk management strategies into overall business strategies as well as considering collaborating with important partners to share risk information. The more companies anticipate and allocate resources to mitigating emerging risks, the better position they will be to capitalize on emerging upside risk.

  • Top Risks on Horizon for 2013

    February 13, 2013

    The top risks that corporate leaders see on the horizon for the coming year include the effect that regulatory changes combined with heightened regulatory scrutiny will have on product and service offerings, global economic conditions that are significantly limiting growth potential, and an unstable political climate in different markets worldwide, according to Executive Perspectives on Top Risks for 2013, a report and survey findings from global consulting firm Protiviti (www.protiviti.com) and the Enterprise Risk Management (ERM) Initiative at North Carolina State University’s Poole College of Management.

  • Overview of World Economic Forum’s Recent Worldwide Risk Assessment

    January 08, 2013

    This recently published report from the World Economic Forum presents the results of the Forum’s annual “Global Risks Perception Survey.” The survey asked respondents to assess 50 risks along scales of likelihood and impact. Each respondent was also asked to consider the interconnectedness of the 50 risks and to evaluate their country’s ability to handle the impact of the risks. The survey was administered in late 2012, and received over 1,000 responses from professionals and subject-matter experts residing in more than 100 countries around the world. With this report, the World Economic Forum seeks to spread information about the risks impacting everyone around the globe and to improve decision-making and risk-awareness across all professions and walks of life.

  • SunGard Survey: How Are Companies Managing Financial Risk?

    December 01, 2012

    This white paper presents the results of a recent study conducted by SunGard, a global provider of technology-related services and solutions. The purpose of the study was to gain an understanding of how companies are currently managing financial risk. To achieve this, SunGard solicited information from over 200 treasury professionals working in companies across a broad range of revenue levels, industries, and geographic locations. These professionals responded to a series of questions addressing various aspects of the risk management process. Respondents were also asked to evaluate the effectiveness of their organizations’ strategies for managing financial risk. The report finds that there is significant room for growth along the risk management curve as it relates to financial risk oversight.

  • Managing Risks of Innovation

    October 01, 2012

    Managers attempting to streamline a global innovation project generally do so while haphazardly managing risk. The reason for rushing projects is either lack of available employees, desires for a faster time to market, or using methods that worked at single location innovation projects. When management fails to spend the time necessary to build global innovation capabilities it could be more costly and more risky to make changes in the future when the change is out of necessity. A recent Harvard Business Review article offers ten guidelines to ascertain that a global innovation project has been organized and managed correctly to ensure its effectiveness.

  • Four Steps to Better Statistical Performance Measures

    October 01, 2012

    Managers hinder their performance insight by focusing on sexy performance metrics that may be persistent but not predictive, and vice versa. These popular key performance indicators (e.g., EPS growth) are loosely connected with long term value creation, based on empirical research. By using the author’s method for determining a measure that is both persistent and predictive, the company will enhance both past and future performance insight and management may be in a better position to identify risk areas that are more closely connected with strategic objectives such as shareholder value.

  • Mature Risk Management Drives Financial Performance

    July 27, 2012

    In a recent survey, Ernst & Young assessed the maturity level of risk management practices and found a positive relationship between risk management maturity and financial performance. It was revealed that specific risk practices were consistently present in the top performers (i.e., top 20% based on risk maturity), but were not present in the bottom 20%. The survey report organizes these practices into specific risk components the firm believes are critical to transforming risk management and driving better business performance.

  • Increasing Percentages of Organizations are Embracing Enterprise Risk Management

    July 01, 2012

  • Executives Take on Enterprise Risk Management Post- Recent Crisis

    June 01, 2012

    In spring of 2012, a survey of 192 U.S. executives from various industries was conducted by Forbes Insights in association with Deloitte that revealed findings vital to the business world that put enterprise risk management (ERM) in perspective. The overriding theme is that most executives (over 90%) are planning to re-organize and reprioritize their approaches to risk management. And, they sense that many of the risks recently experienced will only increase in volatility. Many of the respondents are turning to ERM with an even greater commitment to find better ways to continuously monitor key risks. This Deloitte thought paper highlights several considerations executives will want to have as they seek to strengthen their organization’s enterprise-wide risk management to ensure it is providing strategic value as the world becomes more complex.

  • Leading a Risk Team

    April 01, 2012

    Despite the attempts by many organizations to strengthen their risk oversight efforts, many organizations’ approach to strengthen their corporate risk management are still missing the mark. Unfortunately, many attack the challenge by focusing on pockets of risks, such as insurance, compliance, and fraud prevention, and they fail to focus on those risks most likely to impact the value of the business – strategic risks. Furthermore, some organizations have over-complicated their risk oversight processes by focusing on a form-over-substance approach to what they are trying to achieve. A recent article in CFO.com highlights ways to increase the relevance of a risk management program.

  • Responding to Shifting Global Risk Trends

    March 01, 2012

    The experiences associated with natural disasters and political events that occurred in 2011 are have implications for the kinds of risks organizations may need to consider in the near future. Lessons learned from prior events help challenge boards and senior executives as they think about the need to restructure their approach to risk management and their design of responses to these types of risks, according to a recent report by PricewaterhouseCoopers (PwC), Risk in Review: Rethinking risk management for new market realities. This report is based on the results of PwC’s 15th annual Global CEO Survey, in which more than 1,000 executives and risk management leaders responded on which risks are most significant to their company and how they plan to mitigate those risks.

  • Special Report: Risk Lessons from the 2011 Japan Earthquake Disaster

    January 01, 2012

    In the Global Risks 2012 report, the World Economic Forum features a special report on the Great East Japan Earthquake of March 2011. The special report highlights some lessons learned from the crisis that can be applied by governments and businesses. Some of the lessons include the necessity of redundancies for risk resilience, the value of adaptive leadership, and the importance of timely communication during a risk event.

  • The World Economic Forum’s Global Risks 2012 Report

    January 01, 2012

    The World Economic Forum’s seventh edition of the Global Risks 2012 report details the survey results of 469 global experts from different sectors. The experts ranked the likelihood and impact of 50 global risks that are major concerns of governments, businesses, and other groups. The risks are divided into five categories namely economic, environmental, societal, geopolitical, and technological risks. The report surveys global experts and aims to provide the survey results to assist political, business and other world leaders to be aware of the current global risks that need to be managed timely and effectively.

  • Proactively Managing External Relationship Risk

    November 01, 2011

    The focus on managing third-party risk is becoming prevalent in the current business environment as more organizations turn to external providers to gain access to needed services, reduce costs, or achieve other strategic advantages. While most executives recognize the importance of thinking through risks associated with delegating key tasks to external parties, several studies suggest the extent of vendor risk assessments is lacking and they fail to be adequately resilient in holding vendors to certain risk management standards. A recent thought paper by Crowe Horwath presents a process for managing third-party relationship risks by utilizing a risk landscape framework. They highlight three steps to implement a successful third party risk management program.

  • 2011 RIMS ERM Survey

    November 01, 2011

    The 2011 Enterprise Risk Management Survey published by the Risk and Insurance Management Society (RIMS) shows that ERM is growing as a mainstream business practice with more companies adopting ERM programs. The survey results show a growth in the number of risk managers who are taking on leadership of roles in their companies’ ERM programs. However, companies are still immature in their ERM implementation. Companies are still unable to recognize the link between ERM and strategy.

  • Risk Management in US Government Agencies (non-DoD)

    November 01, 2011

    The Center for Strategic and International Studies, a Washington based non-partisan organization focused on research and analysis related to policy initiatives, examined the risk management processes of United States government agencies outside of the Department of Defense. What the organization found was that there are major consistencies between the agencies of the government. However, many struggle in terms of being transparent in their risk management process. Through their research, the Center identified various best practices that many agencies utilize on a regular basis.

  • Audit Committees Concerns About IT Risks

    October 01, 2011

    KPMG’s Audit Committee Institute recently published its 2011 Public Company Audit Committee Member Survey Report. This report covers the most prevalent issues audit committees would like allocate more attention to over the coming year. One of the concerns that are at the top of their list is the oversight of IT risks and emerging technologies. There is a strong desire among audit committees to improve the quality of information concerning these risks.

  • Audit Committees Call for Better Risk Management

    October 01, 2011

    Risk management was named as a priority issue for audit committees in the 2011 Public Company Audit Committee Member Survey Report recently released by KPMG’s Audit Committee Institute. This report, which summarizes top issues audit committees will be devoting more attention to over the next year, identified the oversight of risk management as being only second to the audit committee’s specific focus on IT risk. Heightened uncertainty and complexity in business continue to demand that companies have more effective risk management programs and risk oversight, and the audit committee is feeling pressure to have a good understanding of those issues.

  • Corporate Crisis:  What are the Similarities and What Can We Learn?

    September 01, 2011

    Cass Business School at City University - London researched some of the largest corporate crises of the last decade. While each company faced very different issues, the researchers found common key risks underlying each of the cases reviewed. The study also reached two main conclusions, which highlight the importance of enterprise risk management in the dynamic business environment.

  • Managing Human Capital Risk

    July 01, 2011

    Though companies recognize the high impact of Human Capital Risk (HCR), many still have immature HCR management processes, if any. The Conference Board researched companies based in North America, Europe, and Asia-Pacific to evaluate current HCR management practices. Companies with Strategic Workforce Planning (SWP) indicated better HCR maturity. The research in this article also highlights a need for HR and ERM executives to engage each other more to better understand risks associated with their human capital management.

  • The Future of Risk Management: A Proactive Approach

    June 30, 2011

    For many organizations risk management is rapidly developing into a more forward looking, enterprise-wide approach, according to Accenture’s 2011 Global Risk Management study of almost 400 executives from 10 major industries. To achieve effective enterprise risk management, organizations must focus on being proactive, rather than merely reactive, and use risk management to both drive competitive advantage and sustain future profitability and growth. The study highlights key results from their survey, challenges that remain, and recommendations that can improve risk management programs.

  • Assessing ERM Programs

    June 01, 2011

    An effective enterprise risk management (ERM) program can significantly help an organization see and take action on risks that may be affecting the achievement of their core strategic objectives. Organizations are increasingly realizing the benefits of strengthening their processes for managing the multitude of risks it faces and boards are holding management more accountable for the effectiveness of those processes. As these processes are designed and implemented, questions often arise as to whether those processes are the correct ones and whether they are consistent with emerging best practices. With growing frequency, the board and senior management are turning to internal audit to provide an objective assessment of their ERM processes. The June 2011 cover story article in Internal Auditor, highlights the role of internal audit in providing those assessment for the board.

  • Risk Management: A Driver of Enterprise Value in the Emerging Environment

    April 29, 2011

    The emerging practice of enterprise risk management has created both challenges and opportunities to further enhance enterprise value. KPMG conducted a survey of CEOs, board members, and risk practitioners across various sectors to provide insight on the challenges they encounter in their organizations’ risk management programs. Further, the survey describes five key imperatives to overcome the identified challenges and improve risk management to increase enterprise value.

  • Implementing Effective Enterprise Risk Management and Compliance

    March 01, 2011

    The costs and processes of implementing an effective enterprise risk management approach can seem intimidating to an organization. This research paper by the Economist Intelligence Unit highlights four stages of the maturity cycle of ERM adoption. The paper suggests steps to consider when transitioning to a mature ERM implementation. Throughout the document, a range of experts emphasize the value of integrating ERM into business processes and some essential steps necessary for effective ERM adoption.

  • Webinar Featuring Insights from Two COSO Risk Oversight Reports

    February 09, 2011

    Listen to a one-hour webinar, ERM and Board Risk Oversight – A Tale of Two Surveys from COSO, that highlights key findings and insights from two recent COSO released survey reports on the current state of enterprise risk management. The webinar features Dave Landsittel, Chairman, COSO, Mark Beasley, Director of the ERM Initiative at NC State, and Jim DeLoach, Protivi Managing Director. Click here to listen to the webinar and click here to view the presentation.

  • Improving Board Risk Oversight

    February 03, 2011

    The spotlight has turned to boards and the result is boards are trying to assess how they should strengthen their own processes to enhance their effectiveness in risk oversight. While some boards seem to be on top of their oversight of the major risk exposures facing the organization, other boards are struggling to understand their role in risk oversight and finding difficulty in pinpointing effective processes to help them. This article highlights two overarching board risk oversight responsibilities and suggests several questions for the board to consider as it assesses its ability to assume those responsibilities.

  • A Survey of Global Risk Management in a Changing Environment

    February 01, 2011

    After the recent global financial crisis, many economies and financial markets around the world appear to be strengthening. However, serious concerns still exist as organizations are not returning to the same environment, but rather one that is constantly changing. That reality is causing many organizations to change their risk management approach. Deloitte recently conducted a survey of financial institutions in an effort to understand the state of risk management in this new environment. Though the survey analyzes the financial industry, this white paper is applicable to many different types of organizations.

  • Enterprise Risk Management in Higher Education

    January 03, 2011

    A recent Association of Governing Boards of Universities and Colleges and United Educators survey raises concerns that higher education is lagging behind other industries in considering risks as part of the strategic planning process. Since the release of the 2009 survey, the challenges that colleges and universities now face have only increased as financial resources tied to endowments, and federal, state, or local funding have shrunk. Unfortunately, with the challenge of managing these very real financial pressures takes the attention of most university leaders, the reality that new strategies being deployed are leading to new and different types of risks never seen before in the university setting may be going unnoticed. A recent Grant Thornton thought paper notes that now, more than ever, institutions of higher learning need to strengthen their enterprise-wide risk oversight as they enter new and different strategic territories.

  • 2010 Report on ERM

    December 21, 2010

    COSO commissioned the ERM Initiative at North Carolina State University to survey senior management executives about the current state of enterprise-wide risk oversight. This report summarizes key findings from the analysis of responses from 460 senior executives about key elements of how they oversee their organization’s most significant risks. Findings suggest that there is room for improvement in enterprise risk management processes across most organizations, with almost 60 percent of respondents admitting that their risk management processes are ad hoc and informal and almost half (42.4 percent) describing their organization’s level of functioning of ERM processes as “very immature” or “somewhat mature”. The report also noted that most organizations turn to COSO’s 2004 Enterprise Risk Management – Integrated Framework as a guide to help them strengthen their risk oversight processes.

  • Board Risk Oversight – A Progress Report

    December 21, 2010

    COSO, in partnership with Protiviti, surveyed over 200 individuals currently serving on corporate boards of directors about the current state of enterprise risk management. Board members were divided on the effectiveness and maturity of their processes and efforts, according to the survey. While 53 percent of participants rated the risk oversight process in their organizations as “effective” or “highly effective,” more than 70 percent indicated that their boards are not formally executing mature and robust risk oversight processes. This report summarizes insights based on the results of this survey, including Protiviti’s insights and recommendations for improvement.

  • Corporate Directors Survey Clarifies Current Board Risk Management Practices

    December 02, 2010

    PricewaterhouseCooper’s 2010 Annual Corporate Directors Survey resulted in responses from 1,110 corporate board members, representing 819 separate boards. Key findings shed insights on corporate directors’ experience and opinions with current risk management practices.

  • Board Risk Oversight: Insights from Recent Proxy Disclosures

    December 01, 2010

    Deloitte & Touche LLP analyzed a sample of approximately 400 organizations’ proxy disclosures about the board’s role in risk oversight that were new in 2010 for public companies. Several observations were obtained from this review that Deloitte summarized in their report, including insights as to how boards are approaching their risk oversight responsibilities. The report noted that there are vast improvements that still need to be made moving forward.

  • Risk Management: Strengthening A Valuable Asset

    September 30, 2010

    Grant Thornton, LLP in conjunction with the Economist Intelligence Unit, recently released a joint report summarizing their analysis of a review of issues surrounding the success of risk management practices during the recent economic crisis. The key finding is that there is a poor perception of current risk management practices, with a majority indicating those practices do not influence decision making. Even though it is clear that organizations are able to point out their major risk areas, most of them still don’t understand how to properly apply that when trying to assess the impact of those risks on performance. Just over one-third of organizations surveyed indicate there is common awareness of risks from the top to bottom.

  • Global ERM Ahead of the Curve

    September 01, 2010

    While there is tremendous focus on the need for organizations to consider enterprise risk management, recent surveys suggest the United States is in catch-up mode relative to global organizations who have already taken important steps in the risk management process. The implementation of an appropriate ERM process is an important step that all organizations should be moving towards, but as seen from the survey, that is not necessarily the case.

  • Risk Management Practices that are Working for Public and Private Sectors

    September 01, 2010

    The Department of Homeland Security Office of Risk Management and Analysis conducted a survey to see what actions are being taken by both public and private sector organizations with respect to their enterprise risk management efforts. They found that there is a focus on integrating risk management and analysis across organizations, finding how risk management is aligned within the organizational structure, and which risk analysis techniques are seen as successful from the participants. Some of the major contrasts between the public and private sector participants are highlighted as well.

  • Global Emerging Risks Survey

    August 02, 2010

    The Oliver Wyman Corporate Risk consulting practice conducted a global survey to assess the importance of emerging risks and how risk management teams are handling these potential risk events at major organizations worldwide. The report summarizing the survey results includes insights into where companies are moving with their risk management teams and how they are evolving during the financial crisis. Potential areas of concern are also covered in the survey.

  • Current state of the Internal Audit Profession and Risk Oversight

    June 11, 2010

    The fallout from the recent financial crisis has quickly changed the way many companies operate. Internal audit is the one branch of an organization that has the authority, knowledge and reach to identify and address significant challenges faced. This report is the 6th annual assessment of the Internal Audit profession by PwC and indicates that while companies recognize the priorities of internal audit, there is a gap in achieving these key attributes.

  • Nine Hallmarks of Successful ERM

    June 01, 2010

    As organizations seek to strengthen their risk oversight, they are interested in learning from others about effective practices that ensure risk oversight provides strategic value. A recent Aon Global Risk Consulting report explored how ERM is being used, the extent to which it has been implemented and its effect on organizational goals. It provides an overview of nine distinguishing characteristics of successful ERM approaches. This report expands on the detailed results from the survey, including the point that ERM has continued to evolve as an accepted and required process to create value.

  • ERM Insights and Operationalization

    June 01, 2010

    One of the biggest pressures facing boards today is figuring out how to balance ERM to both manage risks and still add value to the company. A recent research report conducted by the Financial Executives Research Foundation (FERF) provides benchmarking data from reviews of over 40 ERM programs and interviews with 25 organizations about the current state of ERM and emerging trends of how organizations are operationalizing ERM in the real world.

  • Global Risk Technology Survey

    June 01, 2010

    Aon Analytics collected data in 2009 on the perspectives of risk professionals from leading organizations around the world to provide its first edition of the Global Risk Technology Survey. This report outlines the top ten benefits respondents found from utilizing risk technology or risk management information systems. Within the findings, respondents identified the increased accuracy and reliability of data as well as data consolidation and management as the most important benefits of risk technology.

  • A Survey of Recent Proxy Statement Disclosures

    April 01, 2010

    The recent additions to the list of SEC mandated disclosures require companies to provide descriptions of the board of director’s role in risk management oversight. This article has surveyed a random sample of 50 proxy statements of S&P 500 companies since February 28, 2010 in order to assess how companies are approaching these new requirements. Among the most common themes was the increasing use of an enterprise-wide approach to risk management.

  • ERM Roundtable Summit - Panel Discussions on ERM:  Lessons Learned & ERM:  Directions for the Future

    March 12, 2010

    On March 12, 2010 the NC State University ERM Initiative hosted a half-day ERM Roundtable Summit in Charlotte, NC that involved a series of two 90-minute panel discussions. Our first panel focused on “ERM: Lessons Learned,” while the second panel focused on “ERM: Directions for the Future.” Both panels consisted of real-world ERM experts who are heavily involved in leading ERM efforts within their organizations or who are providing significant ERM leadership roles at a national level through organizations such as COSO, Standard & Poor’s, and Grant Thornton. Both panels engaged in lively discussions about real-world experiences and lessons learned from their leadership in ERM implementation process at their companies. Several themes emerged from the discussion, which are summarized in the following abstract.

  • Report on the Current State of Enterprise Risk Oversight: 2nd Edition

    February 01, 2010

    This second edition report from the ERM Initiative at NC State University and the AICPA provides insight on how boards and senior management teams are responding the challenges of risk oversight in the current economic state. Increased pressures to strengthen risk oversight have pushed some management teams to implement an enterprise-wide approach to risk management while other organizations have maintained their traditional risk management procedures. The report indicates that over 76% of respondents indicated that key risks are being communicated on an ad hoc basis at management meetings, and that almost 70% noted that management does not report the entity’s top risk exposures to the board of directors. About half (48%) admit that they are “Not at All Satisfied” or are “Minimally” satisfied with the nature and extent of reporting to senior executives of key risk indicators.

  • Current State of Enterprise Risk Management

    September 01, 2009

    The recent economic crisis has forced many companies to evaluate their risk management process. The authors of this article conducted a survey to gain a better understanding of risk oversight. The survey results show that although most organizations indicated an increase in the volume and complexity of their risks, they have a fairly immature risk management process in place. The survey also revealed information about barriers to implementing a top-down risk management process and how executives can fuel this process within their organization.

  • Global Emerging Risks

    August 01, 2009

    Financial Times Research and Oliver Wyman recently conducted a survey of 350 executives around the world with the goal of better understanding how organizations view and respond to emerging risks. In addition, the survey highlights the effectiveness of risk identification tools and methods, as well as how risk information is communicated throughout an organization.

  • The Future of Risk

    July 31, 2009

    The current economic downturn has caused companies everywhere to question their risk management process and investigate ways to upgrade their risk management efforts. As risk complexity has increased, so too has company spending on risk management. While some companies are committed to increase resources spent on risk management, a majority will attempt to increase risk management efforts with existing resources. This reality can be achieved by balancing risk, cost and value across the enterprise.

  • S&P Issues Progress Report on ERM Integration into Credit Ratings

    July 22, 2009

    Standard & Poor’s recently published a report detailing the focus of their discussions with rated companies regarding ERM and insights gleaned from these discussions to date. So far, ERM discussions have been conducted with over 300 rated issuers and the report shares the seven questions used as the basis for these discussions. An interesting preliminary finding is that few companies have leveraged their ERM programs to identify risky opportunities that they are well-positioned to capitalize upon - most companies are currently focused on identifying and managing downside risks.

  • The State of Enterprise Risk Management at Colleges and Universities

    July 01, 2009

    A survey was conducted in June 2008 of over 600 presidents and chancellors, CFOs, governing board members, chief academic officers, and risk managers from private and public colleges and universities of varying sizes. Key survey findings indicate there is significant room for improvement in enterprise risk management at higher education institutions. Best practices and action steps institutions can take to improve their enterprise risk management efforts are discussed. Additionally, a sample worksheet is provided to help higher education leaders begin the systematic risk assessment process in their institutions.

  • Global Integrity Survey

    July 01, 2009

    Compliance Week conducted a survey analyzing the role of integrity and ethics programs in corporations around the globe. The survey addressed the structure of these programs as well as metrics used to evaluate them. The accountability of integrity programs and its importance in the current economy was assessed and entities were asked to respond with the biggest risks their corporations faced in the world today regarding ethics and integrity.

  • Global Risk Management Survey

    June 01, 2009

    Risk management today is becoming increasingly important to the marketplace because of the financial instabilities felt by all. This turbulent atmosphere in the marketplace since the early part of 2008 has not only scrutinized the risk management practices of companies, but has proven that there is a significant need for effective risk management capabilities, which allow companies to consistently assess risk while identifying and monitoring emerging risks and reacting to them in a timely manner.

  • Reputation Risk Management

    March 01, 2009

    A 2008 survey investigated the status of reputation risk management at different companies and found that companies are aware of reputation risks but may not be sufficiently managing these risks. There are several methods for managing reputation risks, including engaging with stakeholders, monitoring the content and volume of media coverage of the company, monitoring performance against external ratings or benchmarks, and crisis management. Ultimately, for reputation risk management to be successful, it should be integrated into broader risk management frameworks and reputation risk factors should become a key aspect of business decision making.

  • Best-in-Class Enterprise Risk Management

    February 01, 2009

    The Aberdeen Group conducted an online survey in January and February 2009 of over 120 enterprises in a diverse set of industries and geographies that are devoting resources to improving their enterprise risk management (ERM). Results from this survey and additional interviews of selected respondents helped identify strategies and frameworks companies are using to realize business benefits from their ERM programs. Additionally, this survey provides a roadmap for companies planning an ERM initiative or augmenting an existing initiative in terms of actionable analysis and recommendations to improve ERM within an entity.

  • ERM is Vital for Businesses and the Economy

    January 01, 2009

    With the recent financial crisis many wonder if risk management could have prevented or minimized the fall out. The answer is yes. However many companies fail to properly implement risk management and therefore they do not fully understand the risk they are undertaking. Failures occurred because companies don’t fully understand the proper steps for effective risk management. This report addresses where companies failed and the areas companies need to improve to prevent another financial crisis.

  • Financial Industry Assesses Role of Risk in Credit Crisis

    January 01, 2009

    This global survey conducted by KPMG in conjunction with the Economist Intelligence Unit in October 2008 summarizes responses from over 500 world-wide risk management senior officers in the banking industry about the role risk management played in the current economic crisis and how enterprise risk management would be used going forward. The report based on this survey highlight several themes permeating banking culture’s utilization of risk management that helped allow the current credit crisis. The report provides insights as to possible solutions, which many of the respondents are planning to or are currently taking.

  • The Top Ten Risks for Global Business in 2009

    January 01, 2009

    This report compiles views of industry commentators, sector experts, and Ernst & Young practice professionals as to the major business risks facing “leading global firms” in each of their sectors. The risks identified as the top ten risks for global business in 2009 were rated as having the greatest impact across the largest number of sectors, and these risks will likely do the most to influence markets and drive corporate performance in the coming year. Several of the top ten risks identified were on the list last year: the credit crunch, regulation and compliance, radical greening, cost cutting, and executing alliances and transactions. Three of the top ten risks, non-traditional entrants, managing talent, and reputation risks, moved up from lower rankings the previous year. There were also two new risks that were not identified last year, deepening recession and business model redundancy.

  • Global Risk Management Survey

    January 01, 2009

    AON conducted a global risk management survey in October and November 2008 with risk managers and chief risk officers comprising two-thirds of respondents. Responses represent 551 organizations of various sizes and industries in over 40 countries. A similar survey was conducted two years ago and there is a comparison of the key and emerging risk issues highlighted. The top ten risks facing businesses, overall risk preparedness, and losses related to risks are addressed. Key business topics such as identifying, assessing, measuring, and managing risk; board oversight and involvement; and risk management departments and functions are discussed. One consistent theme through all the findings is that the worldwide economic downturn has had an enormous impact on how risk is approached and managed.

  • ERM Benchmarking Survey

    January 01, 2009

    An ERM benchmarking survey of chief audit executives and heads of internal auditing was conducted that garnered 240 responses from organizations across many industries and nations. From those 165 respondents with a risk management program or process in place, information was gathered about risk management philosophies and drivers, program implementation and structure, communication and reporting, and technology practices. The survey also reports on recommendations and leading practices for risk management programs and processes identified by the respondents.

  • Costs Associated with Regulatory Risks

    December 31, 2008

    A significant portion of an organization’s enterprise risk management efforts in both time and dollars may be spent on compliance and regulatory risks. Compliance with federal regulations cost approximately $1.157 trillion in 2007. There were 159 economically significant rules under consideration in 2007, each having an estimated cost of at least $100 million annually. Regulatory compliance costs are important to all businesses, but can be higher per-employee for small businesses since some costs are imposed regardless of size. Federal regulations provide a means of funding government programs without using tax dollars, essentially becoming a form of off-budget taxation that minimizes public scrutiny. The significant impact of these regulatory compliance costs and their overall lack of visibility suggest a need for increased disclosure, transparency, and accountability related to federal regulations.

  • Managing Information Technology Risk:  A Global Survey for the Financial Services Industry

    December 31, 2008

    Ernst & Young’s first global survey for the financial services industry that provides industry data, trends, leading practices, and opinions on the components of effective information technology (IT) risk management. Based on survey responses, many financial institutions are seeking ways to better integrate IT risk management with their overall risk management program and processes.

  • Strategic Business Risk – Top 10 Risks in Business for 2008

    December 31, 2008

    Ernst & Young conducted a survey of industry analysts in order to identify the top 10 strategic business risks for 2008. It became clear that there is significant variation in risks between sectors of the economy. Nevertheless, the risks that were rated as having the greatest impact across the largest number of sectors were identified and ranked.