Enterprise Risk Management (ERM)

 

Organizations are facing risks in increasing complexity, scope, frequency, and magnitude. Enterprise risk management (ERM) supports decision-making and strategy development by actively identifying and assessing major risks and opportunities on a cross-business and functional basis by creating a foundation for stakeholder communication and consensus across the enterprise. Given the current marketplace and societal focus on topics such as environmental, social, and governance (ESG) issues, reputation, pandemic, intellectual property, climate change, supply chain and third-party management, and cyber risk, corporate stakeholders need a coherent, transparent, yet flexible overarching strategy to systematically manage risk – holistically.

Enterprise Risk Management Framework

Aon’s ERM team partners with clients to design and implement a practical and sustainable enterprise risk management framework that leverage existing client capabilities, fitting each organization’s culture, risk management practices, and governance structure. Whether just developing an ERM program or seeking to evaluate an established one, Aon’s ERM solutions team can help deliver results that exceed your needs and expectations. As a result, there are many benefits that an organization could achieve through its ERM investment. Some of these include:

  • Reduced insurance premiums
  • Reduced volatility
  • Lower capital expenditures
  • Lower operational costs
  • Improved decision making
  • Identify emerging risks
  • Improved vendor management/supply chain
  • Enhanced ESG and climate change position
  • Improved risk culture
  • Better resource allocation
  • Improved reporting
  • No/reduced surprises
  • Lower fraud
  • Improved compliance
  • Reduced fines
  • Better acquisition integration
  • Improved operational processing
  • Reduced cyber exposure
  • Improved reputation

Enterprise Risk Management Consulting Services

Aon can partner with many different organizational partners (e.g., risk management, audit, IT, insurance, operational risk, cyber impact, enterprise risk, business continuity, fraud, the business, board, executive leadership, etc.) on various ERM projects for both the public and private sectors to:

  • Evaluate capabilities and develop ERM implementation strategy
  • Develop a roadmap of suggested activities and processes to develop a sustainable ERM program
  • Anticipate and identify emerging risks and embed the exposure into an ERM strategy
  • Develop an inclusive, cross-functional framework that integrates stakeholders across the organization to build consensus on risk strategies and approaches
  • Develop tools to support advanced risk analysis techniques
  • Provide ongoing guidance and support, including leveraging existing risk mitigation and loss control strategies to anticipate and mitigate future risks
  • Recommend supporting technology of the risk and ERM program
 

Enterprise Risk Management Technology

The Aon Risk Maturity Index is an innovative tool that is designed to capture and assess an organization’s risk management practices and provide participants with immediate feedback in the form of a Risk Maturity Rating, along with comments for improvement. The report includes scores across 40 components of risk maturity that can be benchmarked to peers and industry averages. This award-winning tool, developed in alliance with the Wharton School of Business of the University of Pennsylvania, benchmarks the organization against industry peers and identifies strengths, weaknesses, and opportunities for improvement.

About Aon’s ERM Practice

Aon’s U.S. ERM professionals are based throughout the United States and are part of an integrated global network of ERM professionals across the globe. Aon’s ERM practice members have extensive experience in risk management, risk financing, and risk consulting, including direct implementation experience inside major corporations and public sector entities. This unmatched experience allows Aon to deliver end-to-end ERM consulting services and practical, customized solutions that fit with client culture and business objectives.