The Center for Excellence in ERM at St. John’s University recently released the white paper “The ERM Journey." One thing that stands out in that white paper is how ERM executives believe value is added.
One obvious answer is to build the ERM infrastructure. Table 1 shows that high performing ERM companies have a higher percentage of agreement with the statement “We have the necessary infrastructure to support the ERM process.”
A second method is to integrate ERM better and in the right areas. Table 2 shows that high performing ERM companies have higher percentages of ERM integration in strategy, operations, and finance.
A third method shows up in Table 3. While building and integrating are important, some of the big ERM wins come from helping the culture become risk aware, building a relationship with risk owners, bringing “ah-ha” moments, and things like having business leaders promote and embed risk in their areas.