Chartis publishes roadmap for The Risk-Enabled Enterprise®


6 December 2013

Chartis, the leading provider of research and analysis for risk management technology, has published the first installment of its two-year research program, The Risk-Enabled Enterprise®.

The report, the first in a series of quarterly publications, contains the findings of a global survey of risk professionals in a range of sectors, which Chartis has used to determine the roadmap for The Risk-Enabled Enterprise® research program.

The research initiative, sponsored by IBM, examines how firms can use strategic initiatives to improve enterprise risk management (ERM) and become ‘risk-enabled’ across people and culture, data and systems, and organizational structure and processes.

The results of Chartis’s survey showed that over half (59%) of respondents did not have a well-formulated and communicated ERM process. Respondents said that improving organizational structure and process would be their priority for making their ERM programs fit for purpose.

Findings from the research also showed a growing convergence between quantitative and qualitative risk measurements, the importance of aligning incentives with behavior, and aligning risk and finance.

The research showed that wide-ranging ERM transformation projects were expensive and difficult to carry out, but the use of focused, cost-effective strategic initiatives could be used to drive risk-enablement. Based on the research findings Chartis identified the following strategic initiatives:

•      Model risk management
•      Enterprise-level stress testing
•      Conduct risk management
•      Risk-based performance management

“While many firms understand the need to improve ERM, they are not sure how to achieve their goals,” comments Peyman Mestchian, Managing Partner at Chartis Research. “Implementing improved ERM remains a significant challenge, but we believe that these strategic initiatives can be enablers from improved ERM.”

Over the next two years, Chartis will carry out further research into these strategic initiatives and publish a series of thought-leadership papers, including a final paper on the Risk Enabled Enterprise Maturity Model, to be published in 2015.

"Chartis' Risk Enabled Enterprise® initiative has engaged the interest of the risk industry - from practitioners, to vendors to regulators. Many of the priorities emerging in this first research echo discussions we have with our clients - particularly around the convergence of risk types and managing the rise in big data to achieve holistic and integrated risk management," says John Macdonald, Risk Analytics, IBM. "We look forward to exploring the initiatives highlighted here and to contributing our thinking to this important and timely research."

Chartis carried out a global online survey of 381 risk, compliance, and technology professionals and followed this up with over 25 in-depth interviews with respondents to the survey and domain experts from IBM.

To access the first Risk-Enabled Enterprise® Report, click here.