Last year, Protiviti published Guide to Enterprise Risk Management: Frequently Asked Questions. That publication includes responses to more than 160 questions regarding many topics pertaining to enterprise risk management (ERM). One of its overriding themes is that ERM establishes the oversight, control and discipline to drive continuous improvement of an entity’s risk management capabilities in a changing operating environment.
As part of Protiviti's ongoing Risk Barometer study, we have found that almost 50 percent of senior executives with 150 Fortune 2000 companies in the United States lack a high degree of confidence that their organizations’ current risk management capabilities allow them to properly identify and manage all potentially significant business risks. In Europe, 70 percent of senior executives have a similar concern.
In light of the above, it made sense to us to compile examples of how different companies in the United States, Europe and Japan are improving their risk management capabilities. These companies include: Akzo Nobel nv, Alliant Energy, DENTSPLY International, FirstEnergy Corp, Harrah’s Entertainment, Inc., Holcim Ltd, Mirant Corporation, Newell Rubbermaid Inc., Panasonic (Matsushita Electric Industrial Co., Ltd.), TD Ameritrade, Tomkins plc.
This led to Protiviti's inaugural volume of Enterprise Risk Management in Practice, compiled from a number of the profiles published on KnowledgeLeader during 2006 and 2007. In producing the various profiles for this publication, several common themes emerged that demonstrate why and how companies across multiple industries are improving their risk management capabilities:
- External and internal change often is acknowledged as a catalyst for implementing ERM.
- Education and support are fundamental to an effective ERM process.
- Integration with key enterprise-level business processes helps prevent ERM from becoming a separate and distinct appendage.
- Alignment with company culture underlies the successful ERM programs profiled.
- Defining the value of ERM is a universal focus for all of the companies profiled.
ERM continues to mature as a process, and organizations are finding many ways to implement practical ideas to continuously improve their risk management capabilities. The featured companies are operating in different industries and countries, as such Protiviti believes that you will find ideas in each of the profiles in Enterprise Risk Management in Practice that can be customized to your own organization in your pursuit of ERM, whether you are just getting started or looking for ways to improve processes already in place.
Download the entire Booklet:
(41 pages, 2 MB)