Released on: November 27, 2007, 11:03 pm

Press Release Author: Reuben Aitchison

Industry:

Press Release Summary: Even as government regulators and corporate stakeholders
demand companies do more to address and mitigate enterprise-wide risks, only one in
10 companies in the Americas and Europe has fully integrated an enterprise risk
management (ERM) strategy, according to Aon Global Risk Consulting's survey of
global ERM practices. Aon Global Risk Consulting is a unit of Aon Corporation (NYSE:
AOC).

Press Release Body: Even as government regulators and corporate stakeholders demand
companies do more to address and mitigate enterprise-wide risks, only one in 10
companies in the Americas and Europe has fully integrated an enterprise risk
management (ERM) strategy, according to Aon Global Risk Consulting's survey of
global ERM practices. Aon Global Risk Consulting is a unit of Aon Corporation (NYSE:
AOC).

At the heart of ERM is a comprehensive understanding of the global risks facing an
organization, the design of strategies to mitigate those risks and the building of a
corporate culture focused on risk management.

Fully 83 percent of respondents say they are reasonably familiar or very familiar
with ERM and its implementation and purpose, but significant challenges still exist
when organizations set out to execute an ERM strategy. Meanwhile, while many
companies are taking an enterprise-wide look at their risks, only one in four
organizations say that developing ERM programs is part of their strategic planning
process.

Aon Global Risk Consulting identified corporate culture, strategy and resources as
the three key elements of successful ERM programs, based on feedback from chief risk
officers, risk managers and other senior executives surveyed from among the world's
largest firms.

"Companies need clear and consistent ERM frameworks in place to appropriately assess
and respond to the collective risks that may impact their organizations today," said
Stephen Cross, chief executive officer of Aon Global Risk Consulting. "ERM provides
the insight investors, management, ratings agencies and other stakeholders need to
fully assess a company\'s risk profile.\"

Marrying corporate culture with ERM increases the likelihood programs will be
effective. Those organizations with the most mature ERM programs say corporate
culture was entirely or significantly taken into account in its development.

Performance-driven companies are more advanced in developing the strategy necessary
to support ERM programs, and those that have a dedicated ERM function are also
seeing greater results. Currently, 50 percent of organizations have a formalized ERM
team; an additional 20 percent say they are planning to establish one in the future.

In many companies, implementing an ERM program is at an early stage. One in four
respondents said the organization is aware of risk but has not implemented a
structured response.

\"For businesses to appropriately deal with the risks they face, it is imperative
that they communicate the ERM message through all levels of their organizations,\"
said Andrew Tunnicliffe, AGRC's head of global business development. \"Our survey
suggests companies are behind: just one in seven say their ERM function is good at
communicating that message.\"

Geographic differences with regard to ERM also exist. There is slightly greater
familiarity with ERM in North America; organizations based in the region are less
likely than those in Europe to have a dedicated ERM function.

Full survey results, the report and a series of case studies that illustrate how
companies are tackling the issue of incorporating ERM into their corporate culture
are available at www.aon.com/erminsight2007

Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on
brokerage revenues and voted best insurance intermediary, offering classic car
insurance, high value home insurance, entertainment
and media liability insurance and construction insurance.


Web Site:
http://www.commercialservices.aon.co.uk/commercialservices/microsites/entertainment/


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