We could be facing another financial crisis should organizations not actively embrace and integrate sound risk management practices, according to the latest Risk and Insurance Management Society (RIMS) report.
Ten (10) years after the 2008 financial crisis, RIMS is reflecting on the lessons learned since – and warns that while there has been progress, there is more work to be done.
“The evidence shows that risk management has evolved from a promising but somewhat perfunctory exercise into a strategic management competency,” said RIMS vice president of strategic initiatives Carol Fox.
“Even so, given increasingly uncertain times, risk management professionals would be unwise to declare victory or become complacent.”
Enterprise-wide risk management programs are critical to managing complex, organization-wide risks, RIMS says.
The new report identifies new challenges for risk professionals looking to deliver solutions that create and protect value, and offers recommendations for integrating ERM in today’s sophisticated business environment.
“As a core organizational competency, risk management has the opportunity to play a key role in successfully dealing with a broad spectrum of risks that can impact more than just the organization, but economies, societies, environments and industries as well,” said RIMS CEO Mary Roth.
The report features insight from executives from a wide-range of industries who share their perspectives on where ERM stands today, as well as what the next 10 years might hold. It examines recent literature and studies to better understand the risk management issues that are important to organizations and what is impactful about ERM – which RIMS said challenges risk professionals to deliver programs that create as well as protect value.