ERM Integration is Critical

A recent study by Governance Metrics International found that many large corporations either have or are looking to implement an Enterprise Risk Management ("ERM") program.  However, few companies have yet to fully integrate their program into their business processes.  Treasury & Risk Magazine noted the following about the study's findings.

The report highlights the case of Tyco International, a $20-billion diversified industrial company, which seven years ago was a risk manager’s nightmare. Its CEO indicted and later convicted of defrauding shareholders of $400 million and its books cooked beyond recognition, Tyco was often mentioned in the same breath as Enron and WorldCom. Today, broken up, restructured and under completely new management, Tyco has put risk management front and center in its strategic planning and operations. 

“Today risk management is a component of how this company operates on a day-to-day basis,” says John Jenkins, Tyco’s corporate secretary. “So, for example, with strategic planning, it’s not a matter of the risk manager sitting on the side and suddenly chiming in; it’s just a component of the whole process." 

Integration is critical for an ERM program to be truly successful.  Visit www.WheelhouseAdvisors.com to learn more.