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Recognition of ERM’s value growing: RIMS

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The fact that more than half of the respondents reported that their enterprise risk management programs are helping influence decision-making is a testament to the discipline’s value, according to the 2017 Enterprise Risk Management Benchmark Survey released Monday by the Risk & Insurance Management Society Inc.

According to the survey, 61% of respondents say that ERM is being used to inform and influence strategy, and 62% say that the risk management department is responsible for ERM activities, New York-based RIMS said in a statement.

“The fact that more than half of the respondents reported their ERM programs are informing and influencing strategy is a testament to this discipline’s value,” the report said, adding this was the first year the question had been asked as party of the annual study.

Responses from 397 respondents from more than 14 different industries were collected online from March 6 to May 6, 2017, according to RIMS.

The survey also found that 73% of respondents have fully or partially integrated ERM programs, and 87% agree that executive management expects the ERM program to identify, prioritize, manage and monitor major risks.

More progress is needed, however, according to the report.

“There is still work to do,” the report said, noting, “Nearly half of respondents (49%) say their organizations have not developed any risk appetite or risk tolerance statements at any business level.”

The report said that 24% of respondents have a fully integrated ERM program in 2017, up from 21% in 2013.

“We have seen great progress in the effectiveness of ERM but there is still a large percentage of organizations that have yet to take advantage of the potential value of a fully integrated ERM approach,” RIMS Vice President of Strategic Initiatives Carol Fox said in the statement.