News Risk Management20 Jun 2018

To avoid another financial crisis, pay attention to ERM-RIMS

20 Jun 2018

If organisations do not actively embrace and integrate sound risk management practices, another financial crisis could occur, says a new RIMS report.

The report, Enterprise Risk Management’s Wakeup Call: 10 Years After, takes stock of risk management ten years after the financial crisis of 2008 and reflects on how the business community and risk management professionals have since responded.

Back then, market forces and rewards were reaping prevented financial sector executives from recognising the systemic risks and the need for risk management. In order to avoid a similar situation in the future, boards and senior executives need to commit to ERM principles and practices “in good times and in bad”, said RIMS. “To be fully effective, risk management has to be integrated into strategy decisions and throughout organisational processes," it said.

The report chronicles the diffusion and evolution of ERM in the past decade, identifies new challenges for risk professionals to deliver solutions that create and protect value, and offers recommendations for integrating ERM in today’s sophisticated business environment. 

“The evidence shows that risk management has evolved from a promising but somewhat perfunctory exercise into a strategic management competency,” said RIMS vice president of strategic initiatives Carol Fox, the author of the report. “Even so, given increasingly uncertain times, risk management professionals would be unwise to declare victory or become complacent.” 

The report features insight from executives from a wide-range of industries who share their perspectives on where ERM stands today, as well as what the next ten years might hold. The report also examines recent literature and studies to better understand the risk management issues that are important to organisations and what is impactful about ERM.  

Additionally, the report addresses actions taken by regulators and rating agencies in the past decade.

 “As a core organisational competency, risk management has the opportunity to play a key role in successfully dealing with a broad spectrum of risks that can impact more than just the organisation, but economies, societies, environments and industries as well,” said RIMS CEO Mary Roth.

The report is available to RIMS members here.

| Print | Share

Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.


Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.

Other News

Follow Asia Insurance Review