Several factors are contributing to the demand for ERM, such as increased speed of change, growing market volatility and complexity, higher expectations from investors, greater pressure from regulators, etc. In this context, the need to navigate uncertainties, the increased scrutiny from the board and the new COSO ERM Framework have organizations asking if they have the right focus on ERM: Are they looking to comply and conform, or are they looking to become a more Risk-Informed organization?
Many organizations are demanding value beyond “enterprise risk listing” activities and the inertia that can impact an ERM program that loses momentum. They want and need ERM programs that help them anticipate, adapt and respond to changes, focusing efforts and resources on risks and opportunities that can impact their strategy and performance. Forward thinking organizations are using ERM to integrate strategy, business planning and key decision-making processes to drive better business performance.
We believe that the ERM conversation must change and go beyond an initial assessment to link strategy and performance.
Our proprietary Risk-Informed methodology is aimed at providing management and the board with relevant risk and opportunity information to support decision-making during strategy setting and performance management, thus also allowing companies to accelerate the alignment process with the new COSO ERM principles and related best practices. To this end, our Risk-Informed approach supports the development and evolution of an ERM program that is:
From our experience, we recognize that each ERM program and goals are unique and influenced by organizational culture, strategy and business goals. Therefore, we describe ERM as a journey because it is evolving and not a straight road to success.
Given that there is no “one-size fits all solution,” one of the key benefits of our Risk-Informed approach to ERM is that it can be tailored to fit the maturity, risk culture, and risk management needs and expectations of any organization. It is important to understand the current state of the ERM journey and desired goals in order to envision the next steps.
Protiviti provides ERM related services across the full program lifecycle. We can work with you to build or enhance your program to meet and exceed your expectations.
Answers key questions at the Board/CEO level related to the new COSO ERM framework.
Protiviti's Survey of top risks for 2018. Can be used to emphasize why an intentional plan for a firm's ERM journey is important.
Following the September 2017 release of Enterprise Risk Management — Integrating with Strategy and Performance by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), Protiviti published an issue of The Bulletin encouraging companies to take another look at their ERM.
A tool to evaluate the level of integration of your ERM program into strategic planning and key decision-making processes.