AIRMIC UNVEILS ENTERPRISE RISK MANAGEMENT RESEARCH
“Need to bring clarity to an overused concept”
AIRMIC and Det Norske Veritas (DNV) are to co-operate on an in-depth research project into Enterprise Risk Management (ERM). The main aim will be to measure the worth of ERM and the circumstances under which it adds most value. It is the first research of its type, since it attempts to present a rigorous bottom-up assessment of the benefits of ERM.
A wide range of public and private-sector organisations have agreed to participate. They include the Royal Mail, Metropolitan Police, Liverpool John Moores University, the Highways Agency and Nestlé.
“An enormous range of people and organisations from social workers to global corporations all claim to practise risk management, but we lack a shared understanding of what it means. We need to bring clarity to an overused concept and demonstrate how best to go about ERM,” said AIRMIC chairman Geoff Taylor.
“In my experience, ERM can bring huge advantages to organisations, helping them to become more effective and enterprising. But, like anything else, there’s a world of difference between good and bad practice.”
As well as testing the value of ERM, the researchers will probe the circumstances that contribute to variations in its effectiveness, and they are looking to produce a checklist to assist practitioners.
“Boards rightly wish to be reassured as to the value of enterprise risk management. We intend to provide an insight into what works that provides practical support to anyone involved,” said David Salmon of DNV. “We hope to derive a bottom-up picture of the actual benefits of ERM, and also provide an insight into how to avoid the pitfalls. Our assessment will be based on the real-life experiences of the organisations involved.”
The findings are expected by early 2008. “I see this report becoming a reference point for risk managers, businessmen, government and anyone else with an interest in risk,” added Taylor.
AIRMIC represents risk managers in the UK. Their annual conference, “Competitive Advantage Through Risk Management”, takes place at the QE2 Conference Centre, Westminster June 5-6. DNV is a leading international provider of services for managing risk.
AIRMIC – Mark Baylis, Complete Communications, +44 (0) 23 8034 9719, +44 (0) 7775 693994, markbaylis@aol.com
DNV – David Salmon, +44 (0) 161 477 3818, david.salmon@dnv.com