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Correlation between mature risk management and financial results, organizational resiliency, according to Aon/Wharton School report

CHICAGO – There is a direct correlation between more mature risk management practices and stronger financial results and organizational resiliency, according to the Aon Risk Maturity Index Insight Report, released today by  Aon Global Risk Consulting, the risk consulting business of Aon plc (NYSE:AON) in collaboration with the Wharton School at the University of Pennsylvania. The new findings highlight a relationship between risk maturity levels and the relative resilience of an organization’s stock price in response to significant risk events.

The report was developed as a means of driving marketplace insight on the relationship between an organization’s risk maturity and factors that drive organizational performance.  It builds off the initial findings, published in February 2013, on stock price return and stock price volatility by detailing new correlations found between return on equity and risk maturity.

“Today’s risk landscape can often be difficult to assess and appropriately address, but the results of our report are helping senior risk and finance leaders make great strides in developing successful risk management frameworks,” said Theresa Bourdon, group managing director at Aon Global Risk Consulting. “Our analysis indicates that certain practices and structures can be put into place to help organizations maximize financial results and achieve organizational resiliency in the midst of stock market turbulence.”

Characteristics that determine risk maturity include board- and senior-level understanding and commitment to risk management, transparency of risk communication and a risk culture that encourages full engagement and accountability at all levels of the organization.

Kieran Stack, managing director at Aon Global Risk Consulting and Aon Risk Maturity Index project leader, added, “We continue to see organizations that take a holistic approach to risk and integrate proactive risk management strategies with their broader strategic direction are better positioned for long-term financial and reputation success. This integration is especially important considering the magnitude of risk businesses are dealing with in the current environment.”

About Risk Maturity Index

The award winning Aon Risk Maturity Index tool was developed by Aon in partnership with the Wharton School at the University of Pennsylvania. It is designed to empower risk and finance leaders to assess the maturity of their organization’s risk management structure and provide insight to support its continued development and implementation. The index measures 40 components of ‘risk maturity’ that are grouped into ten overarching characteristics or statements of best practices. The Index is a web-based survey containing approximately 125 multiple-choice questions focused on observable practices and structures related to corporate governance, management decision making and risk management. More information visit http://www.aon.com/riskmaturityindex/

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About Aon

Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United.

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Media Contact:
Cybil Rose            
+1.312.755.3537
cybil.rose@kemperlesnik.com

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