The results of a recent survey appear in the Journal of Accountancy. Normally you wouldn’t find me reading anything of the sort but it was titled “ERM: Opportunities for Improvement” so how could I resist?
Their survey supports quantitatively what many unemployed risk practitioners already know and what an EVP once said to me, “Trevor, risk management is important; we just don’t have time for it.” To paraphrase my fellows bloggers at Riskviews, risk management is the third priority after generating revenues and profits.
Back to the survey, the data reports perceived barriers to ERM implementation included the existence of competing priorities within the organization, insufficient resources to devote to an ERM implementation, a lack of perceived value (for an ERM program), lack of board or senior management leadership for ERM, and the perception that ERM translates into added bureaucracy for the organization.
See the original article by Mark S. Beasley, Bruce C. Branson and Bonnie V. Hancock to view these responses in tabular form and read more about the survey.
Finally, as an ERM practitioner and non-accountant who was briefly an internal auditor, I am not a big proponent of their suggestion that internal auditors should be more involved in ERM initiatives (other than auditing the ERM processes) – because I think the auditor perspective is often too control-focused – but this is the Journal of Accountancy after all.
Enjoy the article.