Showing that effective risk management adds value

Does risk management add value?

We have been advising large businesses and government entities on enterprise risk management (ERM) for many years. Managers often ask us to justify why they should invest in ERM and how to demonstrate its value in measurable terms.

This guidance note distils some of the empirical evidence on the benefits an organisation should expect from an effective ERM framework and process.

Outcomes in brief

There is clear evidence that companies with risk management processes generate better financial and business outcomes than those without. There is also clear evidence that companies with higher levels of risk management maturity perform better than those with lower levels of maturity.

The full text is available here.