In the current environment, few organizations are beginning the journey toward ERM from a standing start. Most have implemented some form of risk management process, and many non-financial services organizations already are advanced in this area. Nonetheless, others view their investment in risk management more as a compliance exercise, and have not perceived or sought to maximize ERM’s wider benefits.
As ratings agencies and other stakeholders bring ERM into greater focus, companies can benefit by assessing where they stand with respect to best practices, their ultimate ERM goal — and what achieving it might mean to external audiences — as well as how much time and resources will be required. Ultimately, the full value of investment in ERM will only be realized when an organization can articulate and communicate its risk management strategy to ratings agencies and other corporate stakeholders.
-- James Maxwell
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