It’s hard to imagine too many people who have taken encouragement from the events of the credit crisis. However, one small group that might fall into this category are those people who have long championed the cause of Enterprise Risk Management.
With widespread acceptance that deficiency in risk management was a leading contributor to the credit crisis, these could be happy days for Enterprise Risk Management (ERM) and its advocates. With that new-found popularity will come accountability though; a request that ERM proves its real worth. Ascribing a quantifiable value to ERM may be difficult – but not impossible as Mike Nolan of KPMG’s Advisory practice explains.
As a concept, Enterprise Risk Management has now been with us for some time yet the concerns over how to quantify its effectiveness refuse to disappear.
Many people have become accustomed to judging ERM in qualitative, ‘softer’ terms. In this regard, it’s hard to argue against its effectiveness, resulting as it does in enhanced risk identification and prioritization, a common risk language, improved risk and controls optimization, better risk monitoring and reporting as well as contributing to strengthening risk governance and culture.
See full Press Release.
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