constant dripping wears away the stone
I’m constantly praising the tangible business benefits of good ERM. A number of blogposts here and on other social media are testimony to this. Until a few month ago, I felt like the proverbial “lonely prophet”. A lot of ERM-related publications had a distinctive retro- / crisis-touch to it and nobody appeared to pay much attention to the strategic aspects of it.
Then things changed. First, COSO issued a compendium of “real business cases” in 2018, which was great. However, I was rather disappointed that this compendium required extra subscription, instead of providing it together with the release of the revised framework.
And now, academia is following suit. The NC State Poole College of Management released a study titled “The Value Proposition for ERM: From Intangible to Tangible”. When I spotted to article, I was elated to see the increased focus on the tangible benefits of ERM! Finally, I’m no longer the sole preacher in the desert.
The document is available here. They provide an executive summary, which really is a summary. Secondly, it is well written and concise. And most importantly, they cite a number of tangible, real life cases.
Two points stand out from that work:
- the link between ERM and strategy. ERM is a forward-looking tool.
- the identification of emerging risks and converting them into opportunities (vs only looking at the downside).
btw: the NC state university website is valuable resource for ERM matters in general. Suggest you head over and spend some time there.