Most people would not attempt driving cross-country without a road map containing information essential to a safe and expedient experience. The same holds true for attempting to successfully implement an enterprise risk management program across an insurance organization.
Post-mortem analysis of troubled insurance companies often reveals bad data as a root cause. The record shows that some of these data problems resulted in significant devaluation and even failure, as the affected companies could no longer effectively manage risk. In essence, these companies lacked an integrated data highway leading to a central ERM destination.
Unfortunately, there is no standard ERM road map, and so one must be constructed for each individual enterprise. Developing an ERM road map is essentially a reverse engineering process starting with a definition of a destination (where you want to be) and working back to a starting point (where you are now). There are four major stages to that process.
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