According to Aon, the model defines a firm's ERM program implementation level on a scale ranging from "initial/lacking" and "basic" at the low end to "defined" for average maturity and "operational" and "advanced" for those at more sophisticated stages.

Only 7 percent of the professionals surveyed rated themselves at the advanced level, while 58 percent reported ERM implementation at the defined or operational levels; and 35 percent categorized the maturity of their ERM programs as initial/lacking and basic.

Consequently, the survey found that 93 percent of organizations have the opportunity to increase the impact of their ERM programs.

The data uncovered the nine hallmarks of top-performing ERM programs:

o Board-level commitment to ERM as a critical framework for successful decision making and driving value.

o A dedicated risk executive in a senior-level position, driving and facilitating the ERM process.

o An ERM culture that encourages full engagement and accountability at all levels of the organization.

o Engagement of stakeholders in risk management strategy development and policy setting.

o Transparency of risk communication

o Integration of financial and operational risk information into decision making.

o Use of sophisticated quantification methods to understand risk and demonstrate added value through risk management.

o Identification of new and emerging risks using internal data as well as information from external providers.

o A move from focusing on risk avoidance and mitigation to leveraging risk and risk management options that extract value.

Laura Taylor, global leader of ERM for Aon Global Risk Consulting said in a statement, "The ERM journey is organic in nature and unique for each organization; it cannot be completed with a cookie-cutter approach, the objective is to have ERM rooted in an organization's culture, management processes and strategy to enhance risk-based decision making and add to their continuity and profitability."

The first hallmark, board level commitment to ERM for success, is a key factor in establishing and maintaining an appropriate risk culture and embedding ERM throughout the chain of command, Aon said. Having a board grasp the value of good risk management practices and getting there involves time and commitment, Aon noted.

Of the respondents considered to be at the advanced ERM maturity stage, Aon said, 100 percent said their boards understand and support the ERM objectives versus only 4 percent of organizations in the early stages of their programs.

As organizations move up the maturity scale, however, they reported that their boards are more able to grasp and support the concepts of ERM, according to the survey.

The survey found that the position of chief risk officer was most often cited as the leader of ERM efforts globally--more so for those with advanced ERM efforts, at 50 percent. By sector, the study found, 42 percent of respondents in financial services said the chief risk officer is the ERM sponsor. Of the 2010 respondents, 39 percent in the initial stages of ERM said they do not have an identified champion for ERM.

How important is a dedicated risk executive to the success of a program? The most cited barriers to ERM, according to the study, are:

o Lack of tangible benefits (40 percent)

o Lack of skills to imbed a program (34 percent)

o Lack of senior management sponsorship (31 percent)

o Lack of a clear implementation plan (28 percent)

o Failure to communicate the case for change (27 percent).

Aon said anecdotal evidence finds that ERM programs falter or fail without clear executive leadership.

Aon's advice for best-practice strategies:

oAppoint an executive-level leader responsible for driving ERM strategy and implementation.

oConsider having the risk function report directly to the board.

o The title of the ERM leader is less important than recognition of that person's position within the organization and the significance of risk management as a strategic tool.