Increasing Percentages of Organizations are Embracing Enterprise Risk Management
Recent research conducted by faculty who lead the Enterprise Risk Management (ERM) Initiative at North Carolina State University reports a steady increase in the percentage of organizations that claim to have “complete ERM processes in place,” with larger organizations and publicly traded companies leading the way.
The report, Current State of Enterprise Risk Management: Progress is Occurring but Opportunities for Improvement Remain, notes many organizations are embracing ERM due to “somewhat” to “extensive” pressure from external parties to provide information about risks.
While organizations are making strides in enterprise risk management, the research highlights ongoing challenges that need to be addressed:
- More structured ERM adoption is needed, especially for mid-sized and nonprofit organizations.
- Clearer risk assessment processes should be implemented to improve consistency across business units.
- Better risk communication practices can enhance leadership and board decision-making.
- Stronger connections between risk oversight and strategy will help organizations proactively manage risks rather than react to them.
As risk and management expectations continue to evolve, organizations must adapt their ERM strategies to remain resilient in an increasingly complex risk landscape.
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