NU Online News Service, Jan. 14, 10:43 a.m. EST
An Aon Corp. brokerage study has found more companies are employing mature enterprise risk management practices to enhance their organization's value and resiliency.
In its just released 2010 Global Enterprise Risk Management Survey, the Chicago-based firm said of the 201 respondents to the Web survey, 62 percent identify themselves as having progressed beyond basic ERM practices compared with 38 percent of those surveyed in 2007.
Aon said this is a clear indication that companies are integrating risk management processes beyond senior management and developing more transparent relationships with key stakeholders like shareholders, customers, vendors and employees.
Respondents with advanced ERM programs have more than doubled during the same period from 3 percent to 7 percent, Aon said. These results point to the fact that ERM is being used to drive bottom line results.
ERM is a method of analysis where a company examines its total risk exposure in every facet of their endeavor. The aim is to avoid unpleasant surprises in the future.
The firm went on to say that organizations in the more mature stages of ERM report they are able to realize significant benefits in areas such as enhancing shareholder value, optimizing and reducing total cost of risk, strengthening business resiliency, and increasing operational efficiency.
"When risk managers truly understand risk and use that information to enhance the organization's overall risk intelligence, they are able to make decisions more in line with their firm's strategic plan, operating plan and external environment," Laura Taylor, global leader of enterprise risk management for Aon Global Risk Consulting, said in a statement. "Our report illustrates how these advanced organizations are able to move beyond focusing on risk avoidance and mitigation toward leveraging risk to drive sustainable growth, continuity and profitability."
The survey, conducted between July and August 2009 is online at www.aon.com/ermsurvey2010.
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