Independent Research Proves 25% Market Value Premium of Mature ERM Programs

Steven Minsky | Nov. 6, 2014

Many business cases for enterprise risk management programs begin with what senior management can expect in terms of return on investment (ROI). Until recently, this argument proved to be a challenging one to make due to the lack of tangible research on the subject.

This year, an independent research study, “The Valuation Implications for Enterprise Risk Management Maturity,” was published in the prestigious Journal of Risk and Insurance. This rigorous peer-reviewed academic study by Queens University MBA program definitively quantifies a 25% market valuation premium for firms that have reached mature levels of enterprise risk management, as defined and measured by the RIMS Risk Maturity Model (RMM).

LogicManager Recognized at Annual RIMS ERM Conference for Connecting Risk Maturity Model Assessment Scores to Company Valuation

Carolyn Snow, President of the Risk and Insurance Management Society, recognized Steven Minsky, CEO of LogicManager and author of the RIMS Risk Maturity Model for Enterprise Risk Management (RMM), for his ongoing contributions to the RMM at last week’s annual RIMS ERM Conference in Miami, FL.

“Steve has worked with RIMS since 2005, in developing this RIMS Risk Maturity Model for the Enterprise Risk Management area. LogicManager, which is based in Boston, donated its intellectual property, its expertise and services for the development of this model. We really appreciate Steve’s work, and his team’s work, in advancing our mission.”

At the same conference, Steven hosted a panel discussion alongside the study’s author, Mark Farrell, and RMM practitioner Morgan Keane, Manager of the Enterprise Risk Management (ERM) Division or the Port Authority of NY & NJ, to further detail these new findings and help risk managers identify areas of improvement within their own risk programs through the RMM, and other ERM solutions.

LogicManager gives free access to the RIMS Risk Maturity Model

LogicManager makes a part of its flagship ERM platform available on the web as a free online assessment tool for the RMM for executives in risk management, and others charged with risk management responsibilities, to develop and improve sustainable ERM programs. This resource allows for the calculation of a score based on the maturity of an ERM program, along with a comprehensive report that serves as a roadmap for improvement.

Individuals can take this free risk maturity assessment for their organization online at the RIMS website. Users can then benchmark their results against those of others in their industry to compares success and identify areas where their program can be improved.

The ROI of ERM

There are simple, direct steps you can take to demonstrate the ROI of a mature ERM program/software solution in this eBook!