Challenges and Issues in Implementing ERM
According to the article titled “Implementing Enterprise Risk Management: Getting the fundamentals
Right”
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by Jerry Micolism of Briston Eaton Associates, Inc. and published on the International Risk
Management Institute, Inc., Micolism throws light to some of the major issues regards the
implementation of ERM. He reports that while most companies believe in the concept of ERM,
many are frustrated by the implementation issues which has apparently not made their ERM practice
beneficial, as it potentially is.
The Committee of Sponsoring Organisations of the Treadway Commission (COSO) reports that
amongst the most critical management challenges is the determination for how much risk an
organisation is willing to take and does accept as it furthers its goal of value creation. They go further
to state the limitations of ERM, (COSO – integrated ERM, 2004, executive summary)