Health and safety and business continuity have become ERM’s primary focus as a result of COVID-19, according to a RIMS survey
More than half of ERM programmes shifted their focus to health and safety and business continuity in response to the COVID-19 pandemic, according to the RIMS 2020 Enterprise Risk Management Benchmark Survey.
The survey provides a perspective on the continued evolution of ERM programs, including a supplement focused on the impact the COVID-19 global health pandemic has had on them. It also notes the advantages that ERM offers for enhancing board reporting, its effectiveness in breaking down organisational silos and influencing strategic decision-making at the highest levels.
Key findings from the survey include:
- 98% of organisations have a fully or partially integrated ERM program, up 26% from 2017;
- 76% of senior leadership teams and boards apply ERM insights into business decisions;
- Health and safety (56%) and/or business continuity (54%) have become ERM’s primary focus as a result of COVID-19;
- 48% cited “meeting strategic and operational objectives” as ERM’s greatest value, and
- 22% saw an increase in resource allocation for ERM as a result of COVID-19 challenges.
“Enterprise risk management is now an accepted mainstream business discipline. That said, work still needs to be done to make ERM fully integrated, agile and proactive,” according to the survey.
“Clearly, executive management relies on the ERM program to provide reasonable assurance that major risks are managed. [However,] the priority of value gained from ERM shifted in the last decade to eliminating silos and increasing certainty in meeting strategic and operational objectives.”