For insurers, enterprise risk management (ERM) often starts as a compliance-driven initiative. However, as companies put ERM processes in place that provide deeper insight into operations and allow organizations to improve their decision-making, they learn the best reason to implement ERM is it is good for business.

"ERM not only has validated observations of risks we face, it's helped us identify opportunity," says Scott McEntee, controller, Farmers Mutual Hail Insurance Company of Iowa (FMH).

"At FMH, ERM has become a formal process that raises awareness by breaking down silos and allows us to make better business decisions," adds Darin Roggenburg, CFO. "It has improved education at all levels of leadership in the company by providing a perspective that's not just about the individual business unit but a holistic approach to FMH."