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
Consistent implementation of new ERM-related policies and procedures
Credit for the work that is done
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
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
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.
Time to work in ERM to decision making process.
Too many silos