The implementation of enterprise risk management hasreached critical mass, shows a new Risk and Insurance ManagementSociety study of more than 1,000 risk professionals.

In RIMS' last ERM survey, conducted in 2011, ERM had alreadypassed the “tipping point” phenomena, in which a previously rareactivity becomes exponentially more common. The tipping pointoccurs after 15 to 18 percent of a population has caught on to anidea that was once known to only a few forward thinkers.

By 2013, 63 percent of RIMS' respondents have either a full (21percent) or partially (42 percent) integrated risk managementprogram—an increase of four points and five points from 2011,respectively. Twenty percent of those who do not currently have anERM system are looking into designing one by next year.

Having hit critical mass (an adoption threshold of 60 percent,as defined by sociologist Everett Rogers), the proliferation of ERMwill be continued and self-sustaining.

The impetus to create and maintain an enterprise risk managementprogram is coming from within organizations—from board directives(25 percent) and risk managers (17 percent)—rather than theregulatory environment (14 percent), shows the study.

Furthermore, 23 percent of respondents claim their CFO and 20percent identify their CEO as the primary reviewer of the company'sERM output, outpacing the 19 percent who said that themanagement risk committee is solely responsible for drawingconclusions from risk data.

“These results may reflect an increased interest in ERMactivities by exec management, including board of directors, toobtain a more holistic view of their organizational risk,” saysRIMS.

Some of the main goals of ERM implementation in 2013 includedmeeting operational goals (16 percent), eliminating risk silos (13percent) and increasing company coordination (13 percent).

While ERM is becoming more widely-adopted, many organizationsstill have a long road towards refining the practice, and accordingto RIMS, this is “relatively consistent” with data gathered twoyears ago.

Eighty-nine percent of the RIMS survey respondents say they wanttheir risk appetite management practice to mature followed by analmost equal amount who says the same about how their organizationuses ERM to uncover risks and opportunities.

Only fourteen percent believe their ERM-based business approachis at the “leadership” level, but as with the adoption curve, afteran initial steep learning curve, expertise comes more naturallyover time.