Marked for success: Tool links risk management practices to business performance

Is the maturity of an organization's risk management framework associated with improved financial performance?

Recent findings from the globally targeted Aon Risk Maturity Index, launched in May 2011, indicate that the answer is "yes." In analyzing a preliminary set of index data for publicly traded companies- ranging from midsize firms to the largest Fortune 100 organizations researchers at Aon and The Wharton School of the University of Pennsylvania have uncovered a statistically significant relationship between an organization's risk management development and its financial performance: Higher risk maturity ratings are associated with improved return on assets and stock performances for most firms. Additionally, they've identified that the components of maturity associated with these performance differences are likely to vary by industries given their different risk and competitive factors.