My recent contribution for the SAP Community Network is now available including an overview of the recent SAP Inside Track program in Newtown Square, PA and my presentation on Enterprise Risk Management (ERM).
First of all some key findings as a summary from my presentation:
1. ERM activities are of huge importance to large enterprises and mid-size supplier companies. Whether it is based on capital, treasury, environmental, natural disaster, or logistics risks …. companies overwhelmingly (by 93% according to one study from 2011) understand the importance of ERM activities as part of the board room to the shop floor.
2. There is a disparity between trained skills and practitioners with the talent required to successfully enable ERM processes in many companies. Only 33% of all companies report that there are the skills and talents necessary to meet near-term and mid-term ERM requirements in large enterprises. (Note to practitioners: rest now since it will become increasingly busy as demand rises for your skills!)
3. Executives do not fully understand the importance of ERM processes and – worse – do not understand the key risk drivers in their organization as much as they should. Only 15% of executives admit that they fully understand what their needs are in this area, while 32% admit they essentially have no clue (“limited to no understanding”) of what key risk impacts affect their business.
Suffice it to say there is a HUGE opportunity for risk practitioners, armed with the right methods, tools and approaches, to make a significant impact in how organizations manage and monitor enterprise risk. Big time.
Read the full SCN blog post here (login and registration may be required).