Government ERM Maturity Continues to Grow

MCLEAN, VA — Feb. 6, 2025 — Government organizations are demonstrating enterprise risk management (ERM) performance levels that reflect a growing and maturing capability, according to a new report from Guidehouse and the Association for Federal Enterprise Risk Management (AFERM).

The report, Government Enterprise Risk Management Survey Results, is based on a 2024 survey of federal government professionals that explores the current state of ERM in their organizations. For the second year in a row, human capital (employee retention, morale, and engagement) and technology (cybersecurity failures) top the list of emerging risks that respondents indicated should be added to their organization’s risk profiles. Moreover, 80% of respondents indicated technology will generate significant risks to their agencies within the next three years.

“ERM in federal agencies continues to evolve,” said Kate Sylvis, Director and ERM Leader at Guidehouse. “In an environment of uncertainty, the ERM capabilities in place will allow organizations to identify risks to changing strategies and objectives. The continued maturation of ERM practices in government is a positive trend that will strengthen agencies’ ability to manage and mitigate risk effectively.”

The annual survey, now in its tenth year, is designed to provide government leaders with perspective on the current state and trends of ERM in the U.S. federal, state, and local governments. Previous surveys identified key factors positively impacting ERM effectiveness, and this trend persists according to the latest findings. According to the report, the two highest scoring demographic categories, with the most positive responses and the highest mean scores, are:

• Organizations where ERM is included in the performance plans of all employees or senior executive service members (or equivalent); and
• Organizations where the ERM program lead reports directly to the agency head or deputy.

On par with last year’s results, 47% of respondents indicated that their organizations have defined risk appetite statements. Communication of the risk appetite continues to be cited as an important aspect of ERM programs. More than 83% of respondents indicated their risk appetite statement has been updated within the past three years, and 47% of respondents indicated that their ERM program plans to increase focus on risk appetite over the next 12 months.

About AFERM
AFERM is a professional organization dedicated to the advancement of federal Enterprise Risk Management (ERM).

The Association shall serve its members by providing a forum for discussion of issues relevant to participants in the federal risk management profession, sponsoring appropriate educational programs, encouraging professional development, influencing governmental risk management policies and practices, and serving as an advocate for the profession. The Association serves government officials and the public by sponsoring efforts to ensure full and fair accountability for management of risk in achieving organizational objectives.

About Guidehouse
Guidehouse is a global consultancy providing advisory, digital, and managed services to the commercial and public sectors. Guidehouse is purpose-built to serve the national security, financial services, healthcare, energy, and infrastructure industries. Disrupting legacy consulting delivery models with its agility, capabilities, and scale, the firm delivers technology-enabled and focused solutions that position clients for innovation, resilience, and growth. With high-quality standards and a relentless pursuit of client success, Guidehouse’s more than 18,000 employees collaborate with leaders to outwit complexity and achieve transformational changes that meaningfully shape the future.