PRIMA GLOBAL event series

PRMIA Global Risk Survey Benchmarks the Role of Enterprise Risk Management in Current and Future Business Processes

PRMIA today released the results of its global Enterprise Risk Management (ERM) survey titled "ERM — A Status Check on Global Best Practices". Supported by Microsoft's Risk and Compliance solutions industry group, this survey was designed to benchmark the current state and future direction of ERM practices around the world. Respondents came from 103 countries and included numerous specialties including risk practitioners, regulators responsible for ERM, consultants and/or vendors working in ERM, and PRMIA members in other related professional roles.

The survey results point to the emergence of ERM as a key component of current and future business processes. Robert R. Reitano, Professor of the Practice in Finance, Brandeis University, International Business School, and one of the main contributors to the PRMIA survey content, highlights some of the key findings of the survey:

• Overall, 90% of respondents confirmed that ERM is very much a part of their current or future business process. While 41% confirmed that their organization has a well-defined ERM program in place, 49% of respondent ERM programs are in various stages of development.
• Business strategy risk was perceived as the key ERM risk, followed closely by credit, market and operational risks, although when asked to rank risks quantitatively, business strategy risk fell to fourth place.
• With respect to implementation and adoption, training and top-down support were cited as the most critical factors for a successful ERM program.
• Over 70% cited "industry best practices" as the goal of their ERM program; most of the rest targeted "above regulatory minimums" in various degrees.
• On average, participant companies are allocating about 3-3.5% of operational costs to their ERM programs, but identify 4.5-5% as what is needed for a successful and meaningful ongoing program.
• 75% of participants used their ERM risk measurements in the setting of target capital for their firms.

As a part of the PRMIA Global Event Series, PRMIA chapters around the world hosted a series of global events to discuss these ERM survey results. Sai Sireesh, Microsoft's Worldwide Director for Risk and Compliance solutions and PRMIA Seattle Co-Regional Director who also actively supported the global survey, shares his perspective on the response to the survey results, "PRMIA Seattle hosted a roundtable to share and validate the global ERM data points. The interactive session stimulated some animated and interesting insights from a cross section of risk practitioners from various industry sectors." Sireesh adds, "Especially of interest were the implementation and adoption-related findings. The ERM survey results, along with the industry roundtable insights, provided a good validation of some of the common issues that we as a solution provider help resolve during implementation of ERM initiatives and blueprints, for example in the area of ease of use, familiarity of ERM tools and ERM as part of everyday workflows and business processes."

The PRMIA "ERM — A Status Check on Global Best Practices" survey is available for download to sustaining members from www.prmia.org.

PRMIA GLOBAL EVENT SERIES — ERM EVENT HIGHLIGHTS

PRMIA Montreal
"PRMIA Montreal's event on Enterprise Risk Management on April 9, 2008 was a solid success with 70 people in attendance and sponsorship from SAS, KPMG and the Montreal Exchange. The event presented three knowledgeable speakers on ERM from New York and Montreal from AON, Algorithmics and KPMG who had a very complementary approach to one another. The level of engagement of the attendees was also quite significant and demonstrated best during the question period which lasted 45 minutes instead of the 15 minutes originally allocated. We look forward to organizing more events in the future in Montreal and hope they are just as successful. All presentation material is available on the PRMIA Montreal webpage."
- Faruk Patel, Co-Regional Director of PRMIA Montreal

PRMIA Philippines
"The April 21 ERM Forum conducted by the PRMIA Philippine Chapter was very successful. The participants, primarily composed of CROs, CFOs and risk managers from varied sectors, appreciated the topic because it was relevant to their respective functions in their institution. Being a guru on ERM and COSO framework, the speaker discussed the ERM framework comprehensively by giving examples and 'live' cases which were highly appreciated by the participants. The lengthy open forum enabled the participants to gain practical tips and tools to meet the challenges of Basel II, particularly on managing operations risk."
- Sophie Ladores, Co-Regional Director of PRMIA Philippines

PRMIA Boston
"The Boston Chapter was privileged to have presentations by James Lam, one of the pioneers of Enterprise Risk Management, and Robert R. Reitano, one of the central figures in PRMIA's global survey on ERM practices. The event was well-attended and filled with interactive discussion between the speakers and attendees. Based on the extent of questions and note-taking, it was apparent attendees had interest and found value in the discussion."
- Ed Dumas, Regional Director of PRMIA Boston

PRMIA Italy
"After the introduction on ERM made by Emerico Amari, Regional Director of PRMIA Italy, Giampaolo Gabbi presented a survey on use of derivatives in the Italian corporates. Then Roberto Bosco, risk manager at Mediaset, held a speech on enterprise risk management in his firm followed by a presentation made by AON on risk transfer solutions. The workshop was closed by SDA Bocconi professor Cesare Conti with some remarks to risk disclosure in the corporate sector. The audience appreciated all speeches and made some specific questions to the various topics treated by the speakers."
- Emerico Amari, Regional Director of PRMIA Italy