More companies are employing mature ERM practices: Aon

More companies are employing mature enterprise risk management practices to enhance organizational value and resiliency, according to the findings of Aon’s 2010 Global Enterprise Risk Management Survey.
“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 — encouraging news in light of the financial challenges many of these companies have faced since the 2007 report,” Aon reports.
Sixty-two percent of 201 survey respondents identified themselves as having progressed beyond basic ERM practices, compared to the 38% who reported doing the same in 2007.
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, Aon reports.
The number of respondents with advanced ERM programs has more then doubled between 2007 and 2009, from 3 % to 7%.
These results point to the fact that ERM is being used to drive bottom line results, Aon says.