We use cookies and other similar technologies (Cookies) to enhance your experience and to provide you with relevant content and ads. By using our website, you are agreeing to the use of Cookies. You can change your settings at any time. Cookie Policy.

For the past few years, it’s been a little lonely for the Enterprise Risk Management (ERM) proponents of the world, but suddenly we seem to have lots of company at the party. Regulators are pushing companies to implement better ERM strategies. Standard & Poor’s is advocating ERM as a lead indicator of risk and credit worthiness. Your colleagues are talking about it. ERM vendors and consultants are shouting from the mountain tops.

This mounting pressure to do something about ERM is one of the reasons “Chief Risk Officer” is the fast growing job title in corporate America according to Aberdeen Group research. It’s also why most companies have started, however haltingly, to incorporate risk management into their business decisions and operations.

The party is definitely underway, but there is a great big elephant in the middle of the room that no one seems to want to talk about. For all the acceptance about the need for ERM, the reality is that people are still confused and uncertain about what to do next. Embracing ERM with a tone from the top is just the first step; implementing it effectively is proving to be a little bit more difficult.

The answer lies in a new iteration of the proven Capability Maturity Model (CMM) created in the mid-1980s to provide a framework to guide and measure software development. The CMM has influenced the creation of similar models that successfully tackle other complex initiatives. The latest to emerge is the Risk Maturity Model (RMM), for Enterprise Risk Management which effectively breaks the issue of risk into its core elements to speed and simplify the implementation of ERM.

The role of the process.

According to the Software Engineering Institute (SEI) at Carnegie-Mellon University, the organization that pioneered the Maturity Model concept, “Everyone realizes the importance of having a motivated, quality work force and the latest technology, but even the finest people can’t perform at their best when the process is not understood or operating at its best.” Enterprise Risk Management is a process, and RMM is the framework to create clear and objective success criteria, facilitate thorough planning and communication and guide effective monitoring and control.

Bring the true risk picture into focus.

While the risk officer ranks are filling up rapidly, most are learning on the job. They are smart and willing, but they come to risk management with strong backgrounds in a variety of corporate functions, such as legal, finance, compliance and IT. As a result, the views of enterprise risk managers and their colleagues tend to be skewed to their backgrounds. Rigorous controls take precedence for the Internal Auditor, for instance, while the compliance pro says it’s all about conforming to the regulations and the marketing maven will declare it is all about the brand and company reputation.


1  2  3  

   Next Page

Explore Our Topics

  • Virtual Conferences
  • Webinars
  • Roundtables

BPM in Action

March 10, 2011

The sixth annual BPM in Action 2011 Virtual Conference will explore cutting-edge market developments in BPM and describe how to leverage them for improved business operation and performance. More

View All Virtual Conferences

Smart Case Management: Why It's So Smart.

Date:Nov 05, 2009
Time:12:00 PM ET- (17:00 GMT)


Date:Oct 29, 2009
Time:15:00 PM ET- (19:00 GMT)

View All Roundtables
  • Research Library
  • Podcasts
  • News

Joe McKendrick: Part II of II: Designing Evolve-ability into SOA and IT Systems

In part two of Joe McKendrick's recent podcast with Miko Matsumura, chief strategist for Software AG, they talk about how SOA and IT systems need to change and grow and adapt with the organization around it.

Listen Now

Phil Wainewright: Helping Brands Engage with Social Media

Phil Wainewright interviews David Vap, VP of products at RightNow Technologies, and finds out how sharing best practices can help businesses understand how best to engage with online communities.

Listen Now

Peter Schooff: Making Every IT Dollar Result in a Desired Business Outcome: Scott Hebner of IBM Rati

Scott Hebner, Vice President of Marketing and Strategy for IBM Rational, discusses a topic on the top of every company's mind today: getting the most from IT investments.

Listen Now

Jessica Ann Mola: Where Will BI Fit In? Lyndsay Wise Explains

In BI, this tough economy and the increasing role of Web 2.0 and MDM are certainly topics on people's minds today. WiseAnalytics' Lyndsay Wise addresses each of them in this informative podcast.

Listen Now

Dennis Byron: Talking with...Deepak Singh of BPM Provider Adeptia

Deepak Singh, President and CTO of Adeptia, joins ebizQ's Dennis Byron in a podcast that gets its hand around the trend of industry-specific BPM.

Listen Now
More Podcasts
  • Most Popular
  • Quick Guide
  • Most Discussed

Quick Guide: What is BPM?

Learn More

Quick Guide: What is Event Processing?

Smart event processing can help your company run smarter and faster. This comprehensive guide helps you research the basics of complex event processing (CEP) and learn how to get started on the right foot with your CEP project using EDA, RFID, SOA, SCADA and other relevant technologies. Learn More

Quick Guide: What is Enterprise 2.0?

A lot of people are talking about Enterprise 2.0 as being the business application of Web 2.0 technology. However, there's still some debate on exactly what this technology entails, how it applies to today's business models, and which components bring true value. Some use the term Enterprise 2.0 exclusively to describe the use of social networking technologies in the enterprise, while others use it to describe a web economy platform, or the technological framework behind such a platform. Still others say that Enterprise 2.0 is all of these things. Learn More