Whitepaper

Enhanced enterprise risk management and strategic decision-making 

Jun 09, 2025 · Authored by John Romano, Corey Parker, John A. Rogula, Audrey Lindquist

Executive summary

The growth of ERM has been impressive. The percentage of organizations claiming to have complete ERM processes in place jumped from 9% in 2010 to 34% in 2023.[1] Driven by growing risk complexity and interconnectivity, and increased regulation, the global risk management market is expected to grow from a $9 billion industry in 2025 to more than $32 billion in 2033.[2] Yet, even as more organizations embrace ERM’s promise of enhanced risk management and strategic decision-making, relatively few reap its full benefits. 

A survey[3] of professionals by Baker Tilly and the Internal Audit Foundation found 6 in 10 ERM programs connect with their organization's strategic planning, but many fail to connect information and insights provided by ERM with their strategic decision-making processes. Among the survey's other key findings:

• Organizations have opportunities to increase enterprise-wide risk awareness. Fewer than half (49%) of respondents agree or strongly agree that risk awareness resonates across the organization. 
• ERM programs have room to better leverage emerging technologies. Nearly 6 in 10 survey respondents (59%) say their programs still rely on basic tools, such as word processing and spreadsheets. Governance, risk, and compliance (GRC) platforms are used by only 21% of respondents and in-house technology is used by 20%.  
• There is great potential for artificial intelligence (AI) to play a larger role in risk management. Fewer than 1 in 10 respondents report AI is used frequently to assist in identifying risks (6%) or heavily used for data input into risk management activities (2%). 

The report, Enhanced ERM and strategic decision-making, offers strategies to address the most common shortcomings identified in the survey, helping organizations strengthen the connection between ERM and strategic decision-making. The discussion covers strategic recommendations in three key areas: timely risk assessments, coordinated efforts and communication with internal audit and leveraging technology. Additionally, the report provides valuable benchmarking data on the current state of ERM, highlighting areas where programs fall short and why.

If you missed the webinar discussing key insights from the report, watch the on-demand recording now! 

This webinar takes a dive deep into the key components of ERM programs. The session explores essential topics such as aligning ERM with organizational vision and strategic planning, effective risk response and reporting, leveraging external resources, and more. By discussing recent survey results on ERM programs, we offer valuable insights into current practices and benchmarking, providing actionable takeaways to help you refine and strengthen your organization's risk management approach. In this on-demand webinar, you will: 

• Gain insights from recent survey results to better understand current ERM practices and trends across various organizations. 
• Develop a deeper understanding of the maturity levels and key components that contribute to effective ERM programs, as shared by industry peers. 
• Explore how ERM strategies align with organizational vision and strategy across diverse organizations. 
• Learn actionable strategies to refine and enhance your organization’s risk management approach. 

References

[1] “2023 The State of Risk Oversight: An Overview of Enterprise Risk Management Practices – 14th Edition,” AICPA and North Carolina State University’s ERM Initiative, July 2023, https://erm.ncsu.edu/resource-center/2023-risk-oversight-report-erm-ncstate-lp/. 

[2] “Risk Management Market,” Market Data Forecast, February 2025, https://www.marketdataforecast.com/market-reports/risk-management-market. 

[3] Baker Tilly & Internal Audit Foundation ERM Maturity Survey, Jan. 07 to Feb. 07, 2025. n = 567.