To continue the discussion of Enterprise Risk Management (ERM) and its role within the business world The ALS Group held its second ERM meeting to discuss recent articles that show the influence of ERM today in business. One periodical that often speaks of ERM is Rough Notes. This week’s discussion revolved around The Institutes update of the ARM course curriculum to include ERM into its material; see here for the article written by Michael Moody.
The discussion mainly revolved around the fact that The Institutes is recognizing the role of ERM which lead to an over 40% change in the curriculum for ARM-54 and 55. By including ERM into these courses it is illustrating the standardization of the ERM philosophy into the business world through standards like COSO and ISO 31000. As The ALS Group has begun to speak to our clients about implementing ERM, it is the ISO standard that has started to resonate with the US/Global Business community as it is more of a risk management processed approach to ERM, whereas, COSO is more accounting driven. After much discussion, our Managing Principal, Al Sica, stressed the importance of aligning any ERM process with an internationally recognized standard. Another important aspect of implementing ERM is that process has buy-in from the C-Suite, and more importantly the Board of Directors, as they will need to not only understand, but drive the process to adopt an ERM culture throughout any organization.
The ALS Group will be holding our next ERM meeting in mid-March to continue to discuss our experiences with ERM and how we can bring this process to our clients. If you would like to discuss Enterprise Risk Management or participate in our discussions further please feel free to contact me at [email protected] or 732-395-4259 or our Managing Principal, Albert Sica, at [email protected] or 732-395-4251.
