Its time for ERM (why companies are becoming increasingly interested in enterprise risk management)
Article Type: Abstracts From: Strategic Direction, Volume 27, Issue 5
Mehta S. Financial Executive, November 2010, Vol. 26 No. 9, Start page: 34, No. of pages: 4
Discusses how the financial and other crises that have stricken even the world’s most successful companies in recent years, particularly the global financial crisis of 2007-2009, have caused governments and regulators to become increasingly interested in enterprise risk management (ERM). Describes how the seeds of ERM development were sown in the mid-1990s when it became clear that there was a pressing need for companies to protect intangible assets such as brand, customer relationships, and knowledge as sources of value and growth. Emphasizes the importance of the chief executive officer (CEO) in ERM, where the support of the CEO and top management is essential for the success of any ERM implementation. Draws on the results of a 2000 study by consultants Towers Perrin which found that 91 per cent of companies were at least investigating ERM, and almost 50 per cent claimed that they had either completely or partially implemented the approach. Concludes that there are significant opportunities for companies that develop effective risk management programmes. Article type:Viewpoint ISSN: 0895-4186 Reference: 40AA496
Keywords: Assets management, Intangible assets,Organizations, Risk management, United States of America
