5 Benefits of Certified Enterprise Risk Management Professional

(CERMP)

Published 26 July 2019

There are three main benefits of Certified Enterprise Risk Management Professional (CERMP), join our star trainer and contributor Gary Costin in understanding them.

Contributor

Certified Enterprise Risk Management

Gary Costin
Senior Presenter

International Institute for Executive Training

Benefit one: The creation of a more risk-focused culture for the organization

Organizations that have implemented ERM note that increasing the focus on risk at the senior levels results in more discussion of risk at all levels. The resulting cultural shift allows risk to be considered more openly and breaks down silos with respect to how risk is managed. As risk discussions develop into a standard part of the overall strategic business processes, operational units often find that addressing risk in a more formal way helps manage their part of the organization as well. Communication and discussion of risk is recognized as not only a process to provide information to senior management, but a way to share risk information within and across operations of the company, and allow better insights and decision making concerning risk at all levels.

Benefit two: Standardized risk reporting

CERMP supports better structure, reporting, and analysis of risks. Standardized reports that track enterprise risks can improve the focus of directors and executives by providing data that enables better risk mitigation decisions. The variety of data (status of key risk indicators, mitigation strategies, new and emerging risks, etc.) helps leadership understand the most important risk areas. These reports can also help leaders develop a better understanding of risk appetite, risk thresholds, and risk tolerances.

One of the major values of ERM risk reporting is improved, timeliness, conciseness, and flexibility of the risk data. This provides the data needed for improved decision-making capabilities within the executive and director levels, and in other layers of management. CERMP helps management recognize and unlock synergies by aggregating and sharing all corporate risk data and factors, and evaluating them in a consolidated format.

Benefit three: Improved focus and perspective on risk

Bond-rating agencies, financial statement auditors, and regulatory examiners, have begun to inquire about, test, and use monitoring and reporting data from CERMP programs. Since ERM data involves identifying and monitoring controls and mitigation efforts across the organization, this information can help reduce the effort and cost of such audits and reviews.
Through all of the benefits noted above, (CERMP) can enable better cost management and risk visibility related to operational activities. It also enables better management of market, competitive, and economic conditions, and increases leverage and consolidation of disparate risk management functions.

Benefit four: efficient use of resources

In organizations without (CERMP), many individuals may be involved with managing and reporting risk across operational units. While developing an ERM program does not replace the need for day to day risk management, it can improve the framework and tools used to perform the critical risk management functions in a consistent manner. Eliminating redundant processes improves efficiency by allocating the right amount of resources to mitigating the risk.

Benefit five: effective coordination of regulatory and compliance matters

Bond rating agencies, financial statement auditors, and regulatory examiners, have begun to inquire about, test, and use monitoring and reporting data from CERMP programs. Since ERM data involves identifying and monitoring controls and mitigation efforts across the organization, this information can help reduce the effort and cost of such audits and reviews.

Through all of the benefits noted above, (CERMP) can enable better cost management and risk visibility related to operational activities. . It also enables better management of market, competitive, and economic conditions, and increases leverage and consolidation of disparate risk management functions.

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