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 challenging 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 Risk Maturity Model (RMM).

LogicManager gives free access to the 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 Risk Maturity Model website. Users can then benchmark their results against others in their industry to compare success and identify areas where their program can be improved.

2018 GRC Market Report Emphasizes New Risk Trends

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!