2015 Report on the Current State of ERM
From research conducted by the ERM Initiative at North Carolina State University (NCSU) on behalf of the American Institute of CPAs, the current state of enterprise Risk Management was explored and recently reported.
During the past six years, the ERM Initiative at NCSU has partnered with the American Institute of Certified Public Accountants’ (AICPA) Business, Industry, and Government Team to survey business leaders about a number of characteristics related to their current enterprise-wide risk management efforts.
For the current report, data was collected during the fall of 2014 through an online survey instrument electronically sent to members of the AICPA’s Business and Industry group who serve in chief financial officer or equivalent senior executive positions. In total, the ERM Initiative at NCSU received 1,093 completed surveys. The report summarizes their findings, and provides a resource for benchmarking an organization’s approach to risk oversight against current practices.
This year, they observed that the maturity of enterprise-wide risk oversight processes appears to have leveled off with large organizations, public companies, and financial services organizations significantly more mature than other organizations in their enterprise-risk oversight processes. Most notably, organizations continue to struggle to integrate their risk oversight efforts with their strategic planning processes. Their report indicates that significant opportunities remain for organizations to continue to strengthen their approaches to identifying and assessing key risks facing the entity especially as it relates to coordinating these efforts with strategic planning activities.