The Center for Excellence in ERM at St. John’s University recently released the white paper “The ERM Journey". While navigating strategy and disruptive risks gets many headlines some fundamentals are still necessary for ERM to be effective. The study shows:
33% of ERM executives do not agree that their assessments are accurate,
48% do not look at risk connections/correlations,
58% have had unidentified risks impact them (surprises?), and
only 46% agree that decision making involves explicit consideration of risk.
The lesson? Get better at how you identify, how you assess, and get involved early (if possible).