Ungated Post | 01 Aug 2014
Creating value through enterprise risk management
Client: Milliman
Oxford Economics worked with the Milliman Risk Institute to produce their 2014 enterprise risk management (ERM) survey of North American risk executives. The survey data was used to prepare a report focusing on those companies that are taking ERM to the next level of strategic integration.
Our survey of 125 North American risk executives shows that large majorities see improved risk-adjusted decision-making, enhanced board risk oversight, and improved performance management as benefits of basic ERM. But for half or more of respondents, ERM is also creating value across a broader range, including improved capital efficiency, organizational and process optimization, higher-quality strategic planning, improved regulatory compliance, and improved brand reputation.
Those we identified as Trendsetters—just 13% of all respondents—stood out by their emphasis on value creation of this sort, with an ERM function that is more collaborative, particularly with internal audit and compliance, and integrated across the organization. Trendsetters are also far more likely to have a Chief Risk Officer, suggesting that ERM is more formalized and embedded deeply into these companies in ways that make value creation sustainable.
Click here to read the full report.
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