Creating Value Through Enterprise Risk Management (2014)

Only a few companies have been able to reach perfection in Enterprise Risk Management (ERM) value creation. Even trendsetters have been found to have weaknesses regarding their basic ERM functions. To fully embed ERM into their operating, budgeting and capital plans, companies need to create measurable value that can strengthen their position in the market.

About 125 risk executives across a variety of industries in North America were surveyed by the Milliman Risk Institute in collaboration with Oxford Economics. It sought to understand how ERM activities translate into business value and how risk activities support and enhance returns while supporting regulatory or rating-agency requirements.

Contents

  • Introduction: The Upside of ERM
    • What is “Enterprise Risk Management”?
    • Who Took the Survey?
    • Three Levels of Proficiency
    • Who Are ERM Trendsetters?
    • Risks and Trends Most Affecting Companies
    • To Learn More About Improving ERM
  • Challenges to ERM Value Creation
    • Issues in ERM Execution`
    • Case Study: Huntsman Uses ERM to Assess New Opportunities
  • Becoming a Trendsetter
    • Closer Collaboration with Top Management
    • Better Use of Risk Appetite Statements
    • Linking Risk Tolerances at the Corporate and Business-Unit Levels
    • Advanced Tools and Methodologies
    • More Frequent ERM Audits
    • Taking a More Proactive Approach
    • Case Study: World Fuel Services Focuses on Market-Price Risk
  • Conclusion: Action Items for Better ERM Value Creation

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