MPIE Recognized as a Leader in Enterprise Risk Management
MPIE received recognition for Enterprise Risk Management (ERM) Maturity by The Risk and Insurance Management Society (RIMS). (1) This recognition is based on the RIMS Risk Maturity Model which objectively measures the effectiveness of risk management program initiatives including the ERM process, risk appetite management, risk indicators, business resiliency and sustainability and overall performance management. The maturity model enables organizations to benchmark their progress and maturity versus other organizations.
About 2,400 participants have completed this evaluation and approximately 15 are recognized per year for this type of achievement.
Implementing a risk-based approach across departments and integrating it into the organization’s culture, is a fundamental component of a successful enterprise risk management program and this is the approach the MPIE Board and leadership has been taking for the past several years.
The value of an ERM approach has been validated by researchers in the Journal of Risk and Insurance revealing that successful ERM processes result in a strong return on investment. Specifically, showing that organizations with higher risk maturity levels experience stronger financial performance and realize an increased valuation of up to 25%. This study, which is the first of its kind, validates the bottom-line benefits of adopting a risk-based methodology and approach to risk management through ERM. (2)
(1) RIMS is a not-for-profit organization representing more than 3,500 corporate, industrial, service, nonprofit, charitable and government entities throughout the world. RIMS has a membership of approximately 11,000 risk practitioners who are located in more than 60 countries
(2) 2014, Journal of Risk and Insurance published the independent research study, “The Valuation Implications for Enterprise Risk Management Maturity.”
Note: ERM is a method of systematically identifying, evaluating and prioritizing the activities and goals of an organization. It is a common risk-based framework that strengthens governance activities, efficiency and drives better business decisions through an ERM based strategic planning process. The approach is focused on both value protection and value creation for the enterprise.