“If you think of the finance department more broadly, besides their core fiduciary responsibilities they are very involved in risk management. I've noted a lot of companies start up enterprise risk management approaches that reside in the financial area because people think of financial risk first before it spreads to other things.
When I was with Amerisure, we built a big analytics space for the ERM function to be able to help us analyze financial trends and market trends. We just started to scratch the surface of predictive modeling.
More and more I think ERM is going to become a core competency of financial areas. Organizationally—with the support of IT—they are going to be looked on as the purveyor of financial risk data and information and come to the table with it, too.
That implies, in some financial areas, a big skills upgrade. Do they have the talent there to think bigger picture and engage effectively with newer technology platforms and have the ability to tie this together across the enterprise? Some places have that; others struggle a little bit with it.”
(Frank Petersmark is CIO Advocate for X by 2.)
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