CHICAGO and LONDON, Jan. 13 /PRNewswire-FirstCall/ -- More companies are employing mature enterprise risk management practices to enhance organizational value and resiliency, according to the findings of Aon's 2010 Global Enterprise Risk Management Survey, released today.
Sixty-two percent of survey respondents identify themselves as having progressed beyond basic ERM practices compared with 38 percent of those surveyed in 2007, a clear indication that companies are integrating risk management processes beyond senior management and developing more transparent relationships with key stakeholders like shareholders, customers, vendors and employees. The number of respondents with advanced ERM programs has more then doubled during the same period from 3 percent to 7 percent. These results point to the fact that ERM is being used to drive bottom line results.
Organizations in the more mature stages of ERM report they are able to realize significant benefits in areas such as enhancing shareholder value, optimizing and reducing total cost of risk, strengthening business resiliency and increasing operational efficiency – encouraging news in light of the financial challenges many of these companies have faced since the 2007 report.
"When risk managers truly understand risk and use that information to enhance the organization's overall risk intelligence, they are able to make decisions more in line with their firm's strategic plan, operating plan and external environment," said Laura Taylor, global leader of enterprise risk management for Aon Global Risk Consulting. "Our report illustrates how these advanced organizations are able to move beyond focusing on risk avoidance and mitigation toward leveraging risk to drive sustainable growth, continuity and profitability."
First-hand accounts about how ERM is driving value for global organizations are included in the report. Following is a snapshot of these testimonials:
- AZ Electronic Materials
- Quality control management; Customer confidence and loyalty
- Clariant International
- Targets and benchmarks for decision-making visibility; Culture change toward increased accountability down to the individual level
- Eli Lilly
- Customer response analysis enhancement; Risk management of supply chain channels
- Origin Energy
- Better evidence of asset worth in a slippery economic environment; Full-on embedded risk culture
- Phoenix Park Gas Processors Ltd.
- Risk awareness down to the individual level; Risk analysis through the life cycle of a program
- Pirelli Group
- Back-up plans to preserve production flow; ERM as a corporate lifestyle
Taken together, the survey data and case study interviews reveal the nine hallmarks of successful ERM approaches, which can be used as benchmarks by organizations looking to assess their programs. To review these traits and access the complete findings of Aon's 2010 Global ERM Survey, visit www.aon.com/ermsurvey2010.
Aon's Global Enterprise Risk Management practice in conjunction with Aon Analytics conducted this survey of more than 200 risk management professionals from around the world with the support of Aon's survey research specialists, who collected and tabulated the responses. Percentages for some of the responses may not add up to 100 percent due to rounding or respondents' ability to select more than one answer.
Note to Editors: Graphics illustrating ERM's maturation and impact are available upon request.
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Aon Corporation (NYSE: AON) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its more than 36,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally through more than 500 offices in more than 120 countries. Named the world's best broker by Euromoney magazine's 2008 and 2009 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008 and 2009. A.M. Best deemed Aon the number one insurance broker based on brokerage revenues in 2007, 2008, and 2009, and Aon was voted best insurance intermediary, best reinsurance intermediary and best employee benefits consulting firm in 2007, 2008 and 2009 by the readers of Business Insurance. For more information on Aon, log on to http://www.aon.com.
SOURCE Aon Corporation