LogicManager's Risk Maturity Model (RMM)
Demonstrate Strong Corporate Governance and Risk Management to the Board of Directors
LogicManager's Risk Maturity Model (RMM) is a valuable tool designed to demonstrate corporate governance and risk management to the Board of Directors. The Board has a fiduciary duty to ensure that the right processes are in place to identify and manage fraud, waste, and negligence risks, with governance over these processes. With the RMM, you can provide your board with tangible evidence of a robust and accountable risk management process that adheres to reasonable standards of care, safety, and soundness. Here's how RMM supports this imperative:
- Fulfilling Fiduciary Duty: Equip your Board with the means to fulfill its risk management fiduciary duty effectively. The board needs to ensure that the necessary processes are in place to identify and manage risks, and that these processes adhere to established standards of care and prudence. RMM will help your board to benchmark your ERM maturity.
- Quantifiable Assurance: Take a quantifiable and measurable approach to risk management. The RMM provides a structured framework that allows the board to assess, understand, and take action on risks based on reliable data and analysis.
- Actionable Insights: Gain actionable insights into your risk management processes. Identify areas for improvement, ensuring that your risk management practices continuously evolve to meet the highest standards of safety and soundness.
Take the free online RMM assessment today to assess the true effectiveness and adequacy of your ERM program.
Complimentary DownloadERM Program Audit Guide
The Audit guide is a valuable resource for your risk and audit teams to work together to make sure you are meeting the obligations of the board. Use the Audit Guide in conjunction with the RMM to confirm your organization’s ERM program is being measured effectively, accurately, and in alignment with the IIA’s standards.
The LogicManager DifferenceEvaluate your Risk Maturity with the RMM
Improve Your Bottom Line
A study conducted by Queen’s University found that companies with a mature ERM program are proven to realize up to a 25% premium on their market value. With data like that, it’s undeniable that the work we do as risk managers is incredibly important to our organizations.
Justify Investment in Your Program
If you’ve ever needed to pitch the importance of your ERM program to the board or other stakeholders, the RMM serves as a great tool to warrant additional spend or resources. Quantifying the areas for improvement you need to reach a respectable level of maturity can help significantly when making your case.
Learn From Industry Leaders
The RMM highlights industry best practices to apply to your own organization’s efforts, no matter how unique your structure, culture or strategic goals. These standards can be applied to various areas across the enterprise and can serve as the foundation for your work for years to come.
Why a Risk-Based Approach is Important:
LogicManager’s RMM Solution
Here’s what you’ll experience during the process of completing the Risk Maturity Model:
Use the version of the RMM that works best for you
The main version of the RMM presents competency drivers aimed at assessing the maturity of your entire enterprise or a whole vertical. We recommend this version be completed by the ERM team or an executive at your organization.
Another version of the RMM has competency drivers adjusted for frontline employees. We recommend that this assessment be sent to 10-20% of your employees to collect their perspective on the culture of risk management at the organization.
Customizable Issue Tracking for Efficient Case Management
The out-of-the-box Issue Tracking form provides you with best practice fields to track your case issue data. Everything is customizable, allowing you to edit, update or combine with your own fields.
Mitigate Risks with LogicManager Taxonomy Insights
Leverage an implementation guide, complete with mitigation guidance for maturing your risk management program. This is powered by LogicManager Taxonomy Insights.
Calculate Your Organization’s Maturity Level
The RMM bubble reports calculate your maturity level for the seven major attributes, and each of the components, laying out perfectly where your organization excels and where you need to improve
Facilitate Cross-Departmental Conversations with RMM Heatmap and Trending Reports
Other reports such as the RMM heatmap by assessment, readiness control matrix, and RMM trending report allow you to facilitate beneficial cross-departmental conversations and track your program’s progress over time.
Strengthen ESG Program with RMM’s Success Factors and Competency Drivers
Using 25 success factors and 71 competency drivers, the RMM will uncover areas of improvement in order to qualify for an ESG disclosure.
- Use your results to prioritize and draw a roadmap to achieving an adequacy level that you can put in your 10K and 10Q disclosures.
- Generate sustainability reports on an ongoing basis to back up your statements.
- Before you know it, you’ve eliminated your compliance and regulator exam risks by having sound reports that support the strength of your ESG program.
“In larger organizations, there is considerable “risk silo creation” and different progress in each. You helped us consider a common framework across our silos (eg Operational Risk, Digital Security, Crisis & Continuity Management, General Security etc).”
– Business Continuity SME
Frequently Asked QuestionsFoundations of the Risk Maturity Model
The Risk Maturity Model (RMM) is a best practice framework and risk maturity assessment tool authored by LogicManager in 2005, in collaboration with the Risk and Insurance Management Society (RIMS). The RMM helps organizations across industries benchmark their risk management capabilities, identify strengths, and understand weak links that inhibit further ERM performance. By using the RMM, organizations can develop and improve sustainable enterprise risk management programs that provide a direct link to business value and performance. A mature ERM program sees gaps in processes as opportunities for improved performance and takes steps to effectively identify, mitigate, and monitor risks, thereby lowering the overall risk level of the organization. Today, the RMM is available within the LogicManager application for professionals and executives to use.
Not only can the RMM help you measure your current risk maturity, but the LogicManager platform will help you execute on improving your program over time and become more mature in the long run. The RMM allows organizations to score their risk programs on a five-level scale, and receive an immediate downloadable report, which provides information not only on current maturity levels as well as ideas on what it may take to achieve a higher level of maturity in each of seven attributes. The Risk Maturity Model provides an actionable internal guide that corporations of all sizes, industries, and geographies can use to improve their enterprise risk management maturity from whatever level they are at today.
Every department within your organization holds risk. The natural extension of this means that every department then also benefits from a mature risk management program, that helps mitigate and manage that risk. If these processes aren’t being done throughout your organization, you aren’t gaining the benefits of a mature program. Without evaluating the maturity of your program, you increase the risk of misalignment between your ERM team and the frontlines of your organization.
A mature risk management program also helps mitigate the risk of negligence within your organization. In order to not be found negligent, you must have a way of proving that the risks that materialized into the incident leading to the negligence claim were disclosed to your stakeholders. This is always addressed in a mature ERM program.
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Take the Assessment OnlineDiscover Your ERM Maturity Score Today with Our Free Risk Maturity Assessment
Take the risk maturity assessment to discover your unique enterprise risk management maturity score. After completing the assessment, you’ll receive a personalized ERM benchmarking report that directly compares your results against the Risk Maturity Model’s umbrella framework to identify gaps and prioritize the next steps for your ERM program. This will help you develop an action plan to take your program to the next level. The assessment requires no prior experience and takes about 30 minutes to complete.
