AIRMIC to carry out in-depth study into enterprise risk management
AIRMIC is to undertake an in-depth research project into enterprise risk management (ERM), said chairman Geoff Taylor yesterday. "While there's quite a lot of anecdotal evidence on the value of ERM, no-one has yet gathered any empirical data on how this approach really adds value," he said.
The research, which will be conducted with Det Norske Veritas, (DNV) should produce a valuable tool for risk managers to show that they are not just ‘doing' insurance, safety or security but are adding value to the business, explained Taylor.
Paul Howard, chair of the risk management steering group, said, "When we started to put this project together, we realised that there were multiple definitions of ERM and the activities involved with it. So we had to find someone to work with who was not jealously guarding their own view of what was ERM - hence the choice of DNV.
"If AIRMIC is going to be at the forefront of risk, this is very much an activity that we should be involved with. If we can bring together a number of different case studies across a whole range of organisations which show how it is done in different organisations, individual risk managers can pick from that what might work in their own organisation."
Howard made it clear that this research would be a starting point which would engender more debate.
As well as testing the value of ERM, the researchers will probe the circumstances that contribute to variations in its effectiveness, and are looking to produce a checklist to assist practitioners.
Taylor concluded: "In my experience, ERM can bring huge advantages to organisations, helping them to become more effective and enterprising. But, like anything else, there's a world of difference between good and bad practice."
A wide range of organisations have agreed to participate in the project, including Royal Mail, Metropolitan Police, Liverpool John Moores University, the Highways Agency and Nestle.
The findings are expected by early 2008 and Taylor predicts that the report will become a reference point for risk managers, businessmen, government and anyone else with an interest in risk.
