Business Drivers For Enterprise Risk Management

Individual silos of risk management have emerged in enterprises worldwide as they react to mounting pressures, including dynamic and distributed business environments, changing geopolitical threats, and new legislation. A federated approach to measuring and managing risk is clearly beneficial, although risk professionals find it difficult to justify building such a process. Risk management leaders must make sure that the business cases for their enterprise risk management (ERM) programs take an expanded view of risk's business impact, reaching beyond compliance to include elements such as resilience, culture, and opportunity. Although most organizations are immature in their implementation of ERM, industry groups and associations like the Open Compliance and Ethics Group (OCEG) and the Professional Risk Managers' International Association (PRMIA) can help risk management program leaders identify successful implementations in other companies against which to benchmark.