CRO Networking Group (CRONG): Defining and Measuring the Value of ERM in the Malaysian Context
3 The IERP® Monthly Newsletter September 2018
We know about the benefits of Enterprise Risk Management in theory, but do they actualize in practice?
On 7th September, an invitation-only CRO Networking Group was held at the IERP® International Secretariat and chaired by Allan Sum, CRO at Bintai Kinden Corporation Berhad. At Bintai Kinden, Allan, a graduate and faculty member of the IERP®, had built an ERM framework from scratch, making him uniquely qualified to speak on determining when or how ERM is paying off for an organization. Providing a brief presentation on ERM fundamentals based on his expertise, he kicked off discussion with a few questions on measuring the value of ERM.
The networking group was well-attended by risk leaders across industries in Malaysia, including banking, insurance, construction, oil and gas, with varying levels of competencies in and exposure to ERM. The result was a lively discussion featuring a diverse range of experiences and approaches used in Risk Management or Enterprise Risk Management.
Measuring the Value of ERM
Measuring the value of ERM proved to be a key area of concern for most of the attendees, and the discussion often raised more questions than answers.
Sum noted that it’s hard to quantify the value of ERM precisely because of the difficulty in quantifying impact. For example, if a core aim of ERM is to improve decision-making, how does one know when the quality of decision-making has been improved? When business is doing well, does that mean ERM has succeeded? Conversely, if the business
With Allan Sum, CRO, Bintai Kinden