Identifying, analyzing, prioritizing, dashboarding, reporting--the day-to-day tasks of running an enterprise risk program can make the
ERM road pretty wide.
For some businesses in Arkansas,
ERM is already in effect or underway.
Why don't more government agencies implement
ERM programs?
Obviously, if executive management does not feel that
ERM provides value to the organization, it is doomed.
Business Minister Edwina Hart with Steve Matthews,
ERM's managing partner in Wales and Ireland and Geraint Bowden, head of
ERM UK's regeneration services
RPM practiced well legitimately advances
ERM to the strategic decision-making level of the company.
ERM is widely acknowledged as the tool to accomplish these varied goals.
But earlier versions of the
ERM framework were presented in such a complicated format that it made it difficult to translate the concepts for many universities.
For Phelps, the fall of AIG stands out as a "classic example" of how
ERM can fail when not implemented comprehensively.
To communicate what I needed in
ERM, I created a chart showing the tables and data fields I imagined would be needed; the green and purple boxes represented Microsoft Access tables.
In a recent development, credit ratings agencies have integrated
ERM as an element of their overall analysis of corporate creditworthiness.
Among the reasons why
ERM will be important going forward are the potential ratings impact on both the reinsurer and on any direct writers that it works with; the ability of a direct writer to get reinsurance if ratings are impacted because of
ERM; and the price that a direct writer will be able to buy reinsurance.
