According to a recent study by the Journal of Risk Insurance, organizations exhibiting mature risk management practices realize a potential value growth up to 25%, confirming the value of strong enterprise risk management programs.
The study's authors report that "firms that have successfully integrated the ERM processes into both their strategic activities and everyday practices display superior ability in uncovering risk dependencies and relationships across the entire enterprise, and as a consequence, enhanced value when undertaking the ERM maturity journey."
The Journal of Risk and Insurance released the study, "The valuation Implications of Enterprise Risk Management Maturity," as a compilation of data and analysis using the RIMS Risk Maturity Model (RMM), gathered over a period from 2006 to 2011. The study encompassed a broad data set of publically traded organizations from a variety of industries. RIMS members submitted nearly 50 percent of the data that researchers analyzed using the RIMS RMM model.
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