In an article on April 1st (no joke), CFO.com included some good information on ERM. The overall message is that the need is clear, recognized both by top executives and boards. In addition, it points out:
- While most (58%) organizations seem to believe the Audit committee of the board should take on oversight of risk management, members of that committee are already struggling to handle their current workload
- Only 22% of global organizations with revenue more than $1b have ERM programs in place, although 68% are in the process of implementing one
- Only 10% have a common process and language for risk management
- Just 17% call their risk management program “integrated”, and 8% are “risk intelligent”
I especially like this section of the article: “”Things are never static, so you need business intelligence on risks that flows in real time to senior stakeholders to enhance their decision making.” “We’re living in a just-in-time world, where we want and need everything at our fingertips. Anything that has risk dimensions needs to be plugged into a BlackBerry and made viewable in a dashboard.”
Bottom line for me: there is progress, but it is slow!
What do you think?