A majority of organizations have an enterprise risk managementprogram but a “surprisingly large minority” of these programs donot include property risks.

According to a survey byAdvisen, done in partnership with XL, 61 percent of the 507risk managers and insurance buyers who took part say ERM programare in place at their organization but 44 percent the programexclude property. The results “[call] into question theenterprise-wide scope of these programs,” says a report of theresults.

Additionally, 42 percent of risk professionals say they aren'tinvolved in decisions their company makes regarding buildingacquisitions or construction—though 54 percent say there is someonewithin the company devoted to or substantially responsible forproperty risk.

The survey found that successfully risk-aware companies arerelationship-oriented and insistent on working with quality brokersand underwriters, understand the principles of good underwriting,communicate with senior management to align risk with corporateobjectives, and emphasize business continuity during a catastrophe.Size of the organization appears to have no bearing, according tosurvey results.

Fifty-four percent of respondents say that aside from purchasinginsurance, the risk department does not play a role in managingsupply-chain risks for the majority of manufacturing, healthcare,public administration, social assistance, finance and insurancecompanies.

Almost half of companies say they do not have staff or thirdparties devoted to property risk management, even though 44 percentanswered that they have large accumulations of physical assets incatastrophe-exposed regions- with company size having no impact onthe response.

Almost 60 percent of respondents say the safety-management roleis independent of RM but maintains regular communication betweenthe departments; 21 percent say they report directly to riskmanagement, and 17 percent say it is separated and sporadicallycommunicates with risk management.

A separate survey was distributed to brokers. They say:

“Risk managers need to work with internal clients as well asexternal and spend time making sure they understand the process andbenefits of risk management,” says Janice Ochenkowski, managingdirector of broker Jones Lang LaSalle. “Having a degree of internalcommunication helps the risk management department know what is inthe pipeline, what folks are working on and when we can actuallytake responsibility for an exposure.”

Another broker says risk managers must have, “a deep knowledgeabout their own company including knowledge aboutsuppliers/customers, interdependencies and bottlenecks.”