ERM process implementation time period.
ERM process like business initiatives has discrete activities with clear objectives and well-defined timetables. While ERM is certainly no exception from the standpoint of applying project management discipline, it is much more than a project.
ERM is a journey, meaning it is a growth process in which the organization integrates risk management with strategy-setting to improve the effectiveness of its risk management capabilities over time.
The length of time required to implement ERM varies, depending on the current state of the organization’s risk management, its desired future state and the extent to which it is willing to dedicate resources to improve risk management capabilities.
In addition, because ERM requires an open environment conducive to effective communications about risks and risk management up, down and across the enterprise, cultural issues may exist for many organizations to overcome.
For example, ERM requires an elimination of barriers functional or departmental so that a truly holistic, integrated, proactive, forward-looking and process oriented approach is taken to manage all key business risks and opportunities not just financial ones.
If there are significant change management issues to address, the period of time to implement ERM will be extended. While there are concrete things any organization can do that will make an impact within 12 months, most organizations will require from three to five years to accomplish their objectives in fully implementing their ERM solution.
ERM process is countinous growth process