Enterprise Risk Management Stakeholder Buy-in
BACKGROUND and PURPOSE
Many businesses employ enterprise risk management (ERM) processes and frameworks to support its objectives and minimize the impact of risk on capital and earnings. Yet at times Chief Risk Officers and others responsible for developing a company's ERM strategy may fail to gain acceptance/buy-in for proposed ERM methodologies and direction from company leadership and other key stakeholders.
The purpose of this project is to examine why this occurs and identify poor and strong practices for achieving internal buy-in for proposed ERM strategies. The research can then be applied to industry to help enhance collaboration between ERM staff leadership and key company decision makers to improve overall company performance.
This RFP is open to individuals knowledgeable in the subject matter.
The Joint Risk Management Research Committee is seeking researcher(s) to perform a study examining practices for gaining acceptance of a proposed ERM strategy. The researcher(s) will identify the factors, processes and practices that lead to both poor and strong levels of stakeholder acceptance. A multidiscipline approach to examining the topic recognizing the risk management, sociological, behavioral, psychological, and economic influences is preferred. Research methodologies to be used for the study have deliberately been undefined in order to give researchers sufficient latitude in the development of proposals.
Among the issues to be addressed in the study include but are not limited to the following:
- What type of ERM framework supports a strong level of stakeholder acceptance?.
- How should decision makers be informed so that there is a greater likelihood of acceptance?
- What business performance analytics are used in presenting an ERM proposal to key stakeholders?
- Is incentive compensation a factor in the process?
- What are the leading practices for gaining internal stakeholder support of proposed ERM methods and processes?
- How does a company's culture impact stakeholder acceptance?
The researcher(s) will summarize research results into a report to be published on the SOA website.
To facilitate the evaluation of proposals, the following information should be submitted:
- Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
- An outline of the approach to be used (e.g. literature search, model, etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
- A description of the expected deliverables and any supporting data, tools or other resources.
- Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
- A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The Joint Risk Management Section Research Committee is interested in completing this project in a timely manner. Suggestions in the proposal for ensuring timely deliver, such as fee adjustments, are encouraged.
- Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.
The Joint Risk Management Research Section Committee will appoint a Project Oversight Group (POG) to oversee the project. The POG is responsible for the selection of the proposal to be funded. Input from other knowledgeable individuals also may be sought, but the POG will make the final decision. The SOA's Research Actuary will provide staff actuarial support.
Any questions regarding this RFP should be directed to Ronora Stryker, SOA Research Actuary, phone: +1-847-706-3614; email:
NOTIFICATION OF INTENT TO SUBMIT PROPOSAL
If you intend to submit a proposal, please e-mail written notification by April 29, 2016 to
SUBMISSION OF PROPOSAL
Please e-mail a copy of the proposal to
Proposals must be received no later than May 13, 2016. It is anticipated that all proposers will be informed of the status of their proposal by the end of June, 2016.
Note: Proposals are considered confidential and proprietary.
The Joint Risk Management Section Research Committee reserves the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The Joint Risk Management Research Committee also reserves the right to redirect the project as is deemed advisable.
The Joint Risk Management Section Research Committee plans to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s).
The Joint Risk Management Section Research Committee may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the Joint Risk Management Research Committee in publicizing or promoting the research and responding to media requests.
The Joint Risk Management Section Research Committee may also choose to market and promote the research to members, candidates and other interested parties. You agree to perform promotional communication requested by the Joint Risk Management Research Committee, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on the research for an SOA newsletter.