How does your organization's ERM program compare to best practices? What is the maturity level of your ERM program? What value are you receiving from the ERM program? Aon's , Global Enterprise Risk Management Survey '10 describes data collected regarding the extent of ERM implementation across organizations, the effect on organization needs, stakeholder requirements, and how ERM is used to balance risk, opportunity, and value.
Respondents benchmark their progress based on Aon's five-stage ERM maturity model. The five phases in the maturity model are:
Fifty-five percent of organizations surveyed classify the organization as defined or operational, which is an increase from Aon's prior survey in 2007.
Responses for primary drivers for ERM include; improving governance and transparency, adopting best practices, and improving performance and decision making. Organizations with mature ERM programs noted value in areas including enhancing shareholder value, optimizing/reducing total cost of risk, strengthening business resiliency and increasing operational efficiency. In addition, respondents noted the value of ERM increases greatly as the ERM program matures.