# How do you build a business case for investing in ERM?

<p class="elv-tracking-normal elv-text-default elv-font-figtree elv-text-base elv-leading-base elv-font-normal" elv="true">How do you build a business case for investing in ERM?</p>

##### Post Metadata
- Posted at: 5 months ago
- Author title: Digital Content Manager
- Net upvotes: 2


## Comments
### Comment 1

Building a business case for ERM starts with shifting the conversation from “we need software” to “here’s the risk we’re carrying today and the value we’re missing.”

A practical way to do that:

1. Start with current pain points
Most organizations rely on spreadsheets or disconnected tools. That leads to inconsistent risk language, manual reporting, and limited visibility. It also creates real exposure. Spreadsheets lack audit trails, are prone to errors, and make it difficult to aggregate and report risk data

2. Quantify inefficiency and hidden costs
Risk teams often spend more than half their time collecting data and building reports instead of managing risk. That’s time leadership is paying for but not getting value from

You can frame this simply:

• How many hours are spent chasing data?

• How long does it take to produce a board report?

• Where are we duplicating work across teams?

3. Highlight the risk of inaction
Without a structured system, you have blind spots. Risks stay siloed, root causes go unnoticed, and leadership lacks a complete picture. In many cases, organizations don’t realize the same risk is being managed multiple times in different departments

4. Connect ERM to real outcomes
ERM is not just about compliance. It helps:

• Reduce fraud, waste, and errors

• Improve decision-making with better data

• Eliminate duplicate work across teams

• Increase transparency from the front line to the board

5. Use maturity as a benchmark
Frameworks like the Risk Maturity Model (RMM) help show where your program stands today and what improvement looks like. More mature programs are not just more organized. They are more repeatable, more scalable, and more valuable to the business

6. Tie it to financial impact
This is what leadership cares about most. Research shows organizations with mature ERM programs can see up to a 25% increase in firm value

You can also point to:

• Time savings from automation

• Reduced audit and compliance costs

• Avoided losses from missed risks

At the end of the day, a strong business case for ERM is not about buying a tool. It’s about showing that your current approach creates inefficiency, blind spots, and real financial risk, while a structured, risk-based program improves performance and protects the organization.

##### Comment Metadata
- Posted at: 5 months ago
- Author title: ERM Strategist | Helping Organizations Operationalize Risk Management | LogicManager




## Related Product
[LogicManager](https://www.g2.com/products/logicmanager/reviews)

## Related Category
[Enterprise Risk Management (ERM)](https://www.g2.com/categories/enterprise-risk-management-erm)

## Related discussions
- [How well does Trello scale into a larger team?](https://www.g2.com/discussions/1-how-well-does-trello-scale-into-a-larger-team)
  - Posted at: about 13 years ago
  - Comments: 6
- [Can we please add a new section](https://www.g2.com/discussions/2-can-we-please-add-a-new-section)
  - Posted at: about 13 years ago
  - Comments: 0
- [Quantifiable benefits from implementing your CRM](https://www.g2.com/discussions/quantifiable-benefits-from-implementing-your-crm)
  - Posted at: about 13 years ago
  - Comments: 4