ERM Challenges

At one of our recent Center for Excellence in ERM Summits participants were asked to list their greatest ERM challenge. Their list is below. Perhaps others can learn from their wisdom.

Senior leadership socialization

Integration into the Strategy Formulation process.

Measuring the value of ERM.

Benchmarking the thoroughness of the program.

Applying consistent and/or universally-accepted risk assessment criteria across different business units/contexts.

Building awareness of the integration between ERM and Strategy

Competitor innovation. 

Consistent implementation of new ERM-related policies and procedures

Credit for the work that is done

Customer attrition 

Deepening organizational understanding of risks, and framing such in a way that facilitates Decision making 

Determining the purpose and "value add" of the ERM program and gaining C-Suite level support for ERM initiatives 

Differentiation between ERM level risk and operational risk.

Education on ERM to middle management

Ensuring the business actively monitors risk.

Ensuring underlying assumptions, modeling and forecasts are adequate to meet our short and long-term obligations and regulatory mandates.

Establishing an ERM system

Formalizing ERM throughout the organization. 

Getting involved in strategy setting and decision making.

Getting the attention of staff at all levels of the agency

Keeping the appropriate balance between profitability and growth

Maintaining a regular cadence of engagement - engagement tends to vary by the risk stakeholders

Maintaining Consistency

Moving from an ERM program that has a higher focus on reducing negative outcomes and managing risks to one that is fully integrated with the business and strategies, increasing the range of opportunities linked to performance ... creating, preserving and realizing value.

not enough resources around model, vendor and ops risk functions

Responsiveness from several business units

Risk appetite

Showing or proving how we add value 

siloed risk activities; no CRO

Standardize ERM governance across all regions.  Insert ERM or its principles into the strategic planning process across al regions.

Talent management

Time to work in ERM to decision making process.

Too many silos