ERM Programs Critical to Managing Complex, Organization-Wide Risks
NEW YORK (June 14, 2018) — If organizations do not actively embrace and integrate sound risk management practices, another financial crisis could occur, according to a new RIMS Executive Report titled, Enterprise Risk Management’s Wakeup Call: 10 Years After.
Reflecting on changes since the financial crisis of 2008, the RIMS report chronicles the diffusion and evolution of enterprise risk management (ERM), identifies new challenges for risk professionals to deliver solutions that create and protect value, and offers recommendations for integrating ERM in today’s sophisticated business environment.
“The evidence shows that risk management has evolved from a promising but somewhat perfunctory exercise into a strategic management competency,” said RIMS Vice President of Strategic Initiatives Carol Fox. “Even so, given increasingly uncertain times, risk management professionals would be unwise to declare victory or become complacent.”
The report features insight from executives from a wide-range of industries who share their perspectives on where ERM stands today, as well as what the next ten years might hold. The report also examines recent literature and studies to better understand the risk management issues that are important to organizations and what is impactful about ERM. The report, then, challenges risk professionals to deliver programs that create as well as protect value.
Mary Roth, RIMS CEO, notes “As a core organizational competency, risk management has the opportunity to play a key role in successfully dealing with a broad spectrum of risks that can impact more than just the organization, but economies, societies, environments and industries as well.”
Additionally, the report addresses actions taken by regulators and rating agencies in the past decade. Complementary to the report, RIMS’ Risk Management Monitor blog recently published the Compliance in 2018: Q&A with James Reese of the SEC that highlights how the SEC views organizational risk management.
Enterprise Risk Management’s Wakeup Call: 10 Years After currently is available exclusively to RIMS members. To download the report, visit RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge. For more information about the Society and to learn about other RIMS publications, educational opportunities, conferences and resources, visit www.RIMS.org.