Many insurers adopting enterprise risk management to comply with rating agency standards are questioning the effectiveness of ERM and its ability to deliver a return on investment, and the concept is not embedded in all corporate cultures, a survey revealed.

While more than 90 percent of respondents have ERM programs in place and see it as an opportunity to improve decision-making and increase shareholder value, fewer than half are confident ERM has been embedded into their strategic planning, resource allocation and performance management functions.

Ultimately, the survey report said the lack of integration means ERM programs may simply be perceived as an additional layer of bureaucracy, rather than being integral to how the business is run.

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