erm consulting

Most of the ERM consulting completed to date has resulted in a research report being
delivered by a consulting firm to their client. Most ERM efforts by large complex organizations have been disappointing in results and unsustainable in business process. RP has done considerable research with global organizations and here is what they are looking for in ERM consulting:

  • Collaboration on design and implementation of ERM
  • Advice on best practices for cultural and change management issues
  • Establish a business process that is repeatable, sustainable & institutionalized
  • Minimize additional resources necessary for an ERM process
  • Develop a method to show ROI and business value for ERM
  • Improve stakeholder management with a transparent but confidential ERM process

SRP believes that motivation for ERM can come from regulators and ratings agencies but MUST also come from a consensus buy-in for the real business value proposition. In addition to fulfilling regulatory and rating agency needs,  SRP believes that ERM must deliver measurable improved results for:

  • Performance management
  • Capital Efficiency
  • Stakeholder Management
  • Operational Excellence
  • Reduction in Total Cost of Risk ( TCOR )
  • Effective Decision Support Material for Senior Executive Management
erm perspectives

S&P states that companies ERM practices will be evidenced by such behaviors as:

  1. Adoption of an ERM framework
  2. ERM staff roles are well defined and well known
  3. Internal & external communications are in place for active Stakeholder Management
  4. There is a set of risk management policies, procedures and measurements in place
  5. Financing and liability management decisions are reviewed in relation to risks

Summary notes from Standard and Poor conference call re: ERM for General Corporates May 9, 2008

Group collaboration.