A new report sees an uptick in enterprise risk management (ERM) spending. London-based Chartis Research’s RiskTech100 global ranking of the top 100 risk technology vendors also includes intelligence on respondents’ vendor preference. The full report delves into the practices the companies employ to counter enterprise risk.
When it came to describing their ERM regime, only 43% of respondents felt that their organizations currently have a well-formulated and communicated strategy for enterprise risk management. Indeed 9% of respondents, which included both insurers and bankers, indicated that their company has no current strategy in place, while 29% described their ERM regime as a “loose concept that is not fully defined with partial sponsorship from the board of directors.”
However, the report did detect a willingness of companies to spend on ERM. When asked about their risk technology expenditure for 2010, only 3% of respondents foresaw a decrease, while 31% said it would remain flat and 31% said it would increase by 10%. An additional 25% predicted an increase of over 25%, while 10% said their increase would be greater than 50%.
"The growth in expenditure on risk technology is fuelled by increasing interest in corporate governance and risk-based regulation," notes Peyman Mestchian, managing partner at Chartis. "However, many risk technology buyers have learned the expensive lessons from Sarbanes-Oxley and Basel II and are looking for smarter, more integrated approaches to implementing risk management systems and breaking down the traditional silo-based approach.”
Click here to see the rankings and full report.
This article can also be found at InsuranceNetworking.com.
Bill Kenealy is a senior editor at Insurance Networking.
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