Businesses around the globe, and across all industries recently experienced history's largest devaluations, business closures and reputational losses - in no small part from companies inability to respond to the extraordinary pace of changes in the risk landscape. 

Today, governments as well as rating agencies, financial intermediaries, and other key components of our global economy have adopted new measures, regulations and practices that expand the requirement for companies to adopt Enterprise Risk Management (ERM).  For instance, Standard & Poor's has implemented a new Corporate Credit rating that when studied, proves that 'strong' ERM corresponds directly to more resilient shareholder value.

Implementation of ERM has been challenging.  Traditional methods of locating, reporting and correllating necessary information across the firm to the right levels within a company have been slowed for a number of reasons - especially when time is of the essence to quickly respond to an emerging risk.  To name just a few of the challenges:

• Limited understanding and/or measurement standards relating to risk appetite and Company strategy
• Different and competing information tools & technologies used to measure the same risk
• No common standards in naming either processes, risks, or controls -
• Difficulty in coordinating people with different management responsibilities - duplication or competition results

These factors have kept management from evaluating exposures or seizing opportunities across similar functions or risk categories on a timely basis - Until more recently when Governance Risk and Compliance (GRC) tools & other methodologies start to feed the ERM frameworks under a common process & risk language for an aggregated view of risk delivered on a more timely basis. 

Madison-Davis has developed an approach working with companies of all sizes to incorporate aggregated views of their risk and exposures by combining the right risk management expertise, data structures, and either proprietary or other available tools/technologies to deliver more powerful information than was managed previously separately in 'silos'. 

An effective Enterprise Risk Mangement (ERM) framework may be simple or complex, depending on our clients' business and the type of risk they need to manage.  One reason Madison-Davis focuses on financial industry and energy is to ensure we can deliver the most current methodologies to our clients - scaling back with smaller or less risky organizations.