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Pandemic bolsters enterprise risk management, finds RIMS survey

Some 22% of RIMS members report increased resources for enterprise risk management (ERM) as a result of Covid-19, the society’s 2020 Enterprise Risk Management Benchmark Survey found.

RIMS said this shift signals an “increasing appreciation for the contribution of risk management”.

As first reported in Business Insurance, the survey also found that nearly half of RIMS member organisations increased their reporting of pandemic risks in response to Covid-19, while 34% increased their focus on low-likelihood/high-impact risks.

According to 20% of respondents, Covid-19 has changed governance oversight of risk management, whether via new executive leadership, management-level committee oversight or from board level.

“The Covid-19 pandemic triggered both increased scrutiny and visibility of risk management as it highlighted the interdependencies of risk throughout an organisation’s ecosystem,” the survey report states.

The survey found that more than 50% of ERM programmes have shifted focus to health and safety and business continuity in response to the pandemic.

Some 98% of organisations have a fully or partially integrated ERM, up 26% from 2017, the survey found.

In addition, some 76% of senior leadership teams and boards apply ERM insights into business decisions, according to the latest RIMS poll.

“Enterprise risk management is now an accepted mainstream business discipline. That said, work still needs to be done to make ERM fully integrated, agile and proactive,” the report states.

The report comprises responses to two different surveys, collected via a web link from the end of July to mid-September 2020.

Some 288 risk management professionals across more than 14 industries responded to the ERM survey, while 613 risk management professionals responded to the ERM Covid-19 survey.

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