A new report sees an uptick in enterprise risk management (ERM) spending. London-based
When it came to describing their ERM regime, only 43% of respondents felt that their organizations currently have a well-formulated and communicated strategy for enterprise risk management. Indeed 9% of respondents, which included both insurers and bankers, indicated that their company has no current strategy in place, while 29% described their ERM regime as a “loose concept that is not fully defined with partial sponsorship from the board of directors.”
However, the report did detect a willingness of companies to spend on ERM. When asked about their risk technology expenditure for 2010, only 3% of respondents foresaw a decrease, while 31% said it would remain flat and 31% said it would increase by 10%. An additional 25% predicted an increase of over 25%, while 10% said their increase would be greater than 50%.
"The growth in expenditure on risk technology is fuelled by increasing interest in corporate governance and risk-based regulation," notes Peyman Mestchian, managing partner at Chartis. "However, many risk technology buyers have learned the expensive lessons from Sarbanes-Oxley and Basel II and are looking for smarter, more integrated approaches to implementing risk management systems and breaking down the traditional silo-based approach.”
Clickhere to see the rankings and full report.