More companies are moving beyond basic enterprise risk management practices, according to an Aon Corp. survey released last week.

The Global Enterprise Risk Management Survey 2010, conducted by Aon's global enterprise risk management practice, found that 62% of the survey respondents reported going beyond basic ERM, compared with only 38% in Aon's inaugural ERM survey in 2007.

“Respondents indicate that the primary drivers for investment in ERM are improving governance and transparency, adopting best practices, and improving performance and decisionmaking,” Aon said in the survey. “The number of organizations seeking improved performance and decisionmaking with ERM has risen dramatically since the 2007 survey.”

Aon said 55% of the 201 client and nonclient respondents described themselves as being at the “defined” or “operational” level of ERM, “meaning that they have policies and techniques in place to identify, measure, monitor and manage some risk components; this represents a healthy 20-point increase over the 2007 level.

“The number of respondents who have matured to the "advanced level' since 2007 has more than doubled from 3% to 7%, and respondents in this stage of maturity report they now have dynamic ERM processes that allow adaptation to changing risks and opportunities,” Aon said in the survey.

Aon uses a five-stage ERM maturity model to evaluate ERM programs. The stages range from “initial/lacking” through “basic,” “defined,” “operational” and “advanced.”

The advanced ERM level is marked by a “well-developed ability to identify, measure, manage and monitor risks across the organization; process is dynamic and able to adapt to changing risks and varying business cycles; (and) explicit consideration of risk and risk management,” according to Aon.

Aon stressed that ERM is not a one-size-fits-all process.

“It is clear from the survey findings that the ERM journey is organic in nature and unique for each organization; it cannot be completed with a cookie-cutter approach,” Aon said in the survey. “The objective is to have ERM rooted in an organization's individual culture, management processes and strategic vision, leading to enhanced risk-based decisionmaking. Advanced practitioners have honed this capability and are better positioned to capitalize on emerging opportunities.”

“As companies mature on the (learning) curve, they really have the ability to drive value in the organization,” said Laura Taylor, global practice leader of ERM for Aon Global Risk Consulting in New York and a survey co-author. “Specifically, the respondents identified enhancing shareholder value, optimizing and reducing total cost of risk, and strengthening business resiliency and increasing operational efficiency.”

The report is available online at www.aon.com/ermsurvey2010.