Increasing Demand for Strong ERM Solutions

A new survey by IDC Financial Insights confirms that demand for Enterprise Risk Management ("ERM") solutions is increasing as the new regulatory environment becomes more certain in the wake of the financial crisis. This is not a surprising result to readers of this blog, but one that will become even more apparent as we enter the latter half of 2010 and into 2011.  Here is an excerpt from the survey as reported by American Banker and Bank Technology News.

The microscope that’s fixed on enterprise risk management is getting more powerful, from both internal and external sources, says IDC Financial Insights. In its 2010 survey of senior risk managers at Tier One and Tier Two U.S. banks, the research firm found that both top management and regulatory agencies are paying more attention, and that delinquency and other customer credit risks linked to the banking crisis are still front and center.

Key findings from this study include the following:

• Enterprise risk management is now getting more attention from internal (boards) and external (regulators) parties than ever before.


• The overall economy still has question marks, which is increasing the pressure on consumers and commercial customers to make payments – stress on delinquency is still front and center.


• With the focus on speed, accuracy, and efficiency, cloud or hosted risk management solutions are gaining more and more consideration by financial institutions. When asked about whether the institution is looking to replace in-house solutions with hosted solutions over the next 12 months, 25% of respondents gave a positive answer.


• According to the survey results, 58% of respondents are concerned about increased levels of systemic risks over the next 12 months.

Well constructed ERM programs are the best antidote to the increasing pressure from key stakeholders such as regulators and boards. For help in determining the necessary steps to construct your program, visit www.WheelhouseAdvisors.com.