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In this year’s survey, we continue to see Federal agencies exhibiting overall ERM performance levels reflective of an emerging capability – and explaining incremental positive trends related to effectiveness, integration, culture, and risk appetite.
In this year’s survey, we see the continuation of many positive trends related to the effectiveness and adoption of ERM practices noted in last year’s report. However, in some areas the positive trends we saw last year either levelled-off or slightly reversed.
The sixth year’s survey results highlight characteristics that impact the effectiveness of ERM. ERM continues to exhibit performance levels that are still reflective of an emerging capability, although incremental positive trends are evident across most of the areas measured in the survey.
This year’s survey expanded on the number of demographic categories that were incorporated, to further identify those organizational characteristics that demonstrate the highest correlation to the establishment of robust and effective ERM programs in the Federal government.
The overall results for this year’s survey demonstrated limited capability maturity in many areas of Federal ERM. Many of the same structural and cultural barriers continue, limiting the generation of organizational benefits. One exception to this trend continues to be seen in the improved outcomes for organizations which have had an ERM program in place for three or more years.
For the third consecutive year, the survey continues to demonstrate the year-over-year trend of new ERM programs coming into existence across the Federal government, many of which still exhibit capabilities that are predominately in the early stages of development, particularly with respect to the cultural and leadership aspects of effective ERM.
The second annual survey illustrates a dynamic year due to the addition of requirements for Executive Branch agencies to implement ERM programs. This change has brought both opportunities and challenges to Federal agencies, as organizations determine how to chart their path to not only comply with the new requirements but also to achieve real value of adopting ERM.
In this year’s inaugural survey, Federal risk leaders indicate that effective risk management is a necessity and that ERM is widely recognized as a growing best practice in the Federal government. Leaders across the government anticipate that the number of resources deployed in support of ERM will increase in both the near-term and the foreseeable future.
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