WASHINGTON, DC (April 4, 2018) — Nine in 10 members (90%) recently responding to a survey by the Association for Federal Enterprise Risk Management (AFERM) indicate the development of a Risk Profile substantively increases awareness for and discussion of risks within their agencies. The Office of Management and Budget (OMB), Circular A-123, “Management’s Responsibility for Enterprise Risk Management and Internal Control,” required development of the Risk Profile starting in fiscal year 2017. Impact of that requirement is now being positively felt across the federal government. Previously, OMB had only encouraged enterprise risk management (ERM) integration within an agency’s strategic planning cycle and annual performance planning.
“While ERM programs continue to emerge and grow across the Federal government, it is clear ERM is helping drive organizational performance and decision-making,” said AFERM President Peggy Sherry. “These insights from our ERM professional members help reinforce the importance of a well-funded, highly-functional ERM program.”
One AFERM member noted, “The development of a risk profile has benefited the awareness of risks that have [driven] discussions with leadership regarding people, processes, technology, and use of resources. It also [has increased] cross-functional collaboration.” Another member added, “Recurring discussions regarding the Risk Profile have generated more substantive debate on actions that can be taken to prevent, avoid or otherwise mitigate the manifestation of the identified risks. Discussions have also honed in on the cause-effect of risk, with greater attention being placed on risk sourcing.”
Additional details pertaining to AFERM’s survey and related comments can be found on the AFERM website: https://www.aferm.org/about/surveys/.
AFERM is the only professional association solely dedicated to the advancement of Enterprise Risk Management (ERM) in the Federal government through thought leadership, education and collaboration. With over 600 members, AFERM provides programs and education about benefits, tools and leading practices of Federal ERM and collaborates with other organizations and stakeholders to encourage the establishment of ERM in Federal departments and agencies. For more information about AFERM, visit www.AFERM.org. Follow us on LinkedIn and Twitter.