Enhanced Decision Making Through Risk Appetite Lens
The AFERM survey showed 66% of all respondents said their ERM program is led by a chief risk officer.
Agencies are required to use enterprise risk management approaches in their planning and budgeting. Despite the eight-year-old mandate in Circular A-123 from the Office of Management and Budget, the AFERM survey highlights why certain agencies are more successful than others.
The 2023 AFERM survey showed 84% of respondents said their organization has an ERM program and 66% said their program has been in place for at least five years. Additionally, the survey showed a 20% increase to 66% of all respondents who said their ERM program is led by a chief risk officer.
In a recent interview at Federal News Network, Kate Sylvis, ERM Practice Leader at Guidehouse, which supported the AFERM survey, said the survey results tell a good news story about ERM in many ways.
Sylvis said understanding and applying a “risk appetite” to decision making is a more advanced concept for many organizations. She said more agencies are able to quantify risk and decide how much to accept demonstrates the continued maturity of ERM.
According to Sylvis, the survey results continue to demonstrate where the challenges to ERM continue to lie.
Click here to learn more about the 2023 AFERM Survey Results.