For years, enterprise risk management was often measured by how well it could catalogue risks, maintain frameworks, and support governance. That is no longer enough.
In a recent article, Rachel Koning Beals writes that a new ProSight research report sees ERM moving from “cartographer” to “navigator”—from documenting risk to helping leaders make faster, better decisions in a more volatile environment. The report—“From Serious Cartographer to Strategic Navigator: The Evolution and Future of ERM in Financial Services”—draws on a survey of Category I to IV banks and a working group that included representatives from more than 25 North American financial institutions.
Here are a few practical takeaways:
Speed and business impact are now central. Koning Beals writes that ERM teams have historically served as second-line oversight for enterprise-wide processes such as risk identification and risk appetite, while also incubating frameworks for emerging risks like climate and AI adoption. Now the remit is expanding. ERM teams are sharpening their focus on business impact, scalability, and risk efficiency. That shift matters because, as the survey found, too many layers of review, excessive documentation, and a lack of risk stratification can slow decisions and reduce the usefulness of ERM output.
AI could help ERM become more forward-looking. The survey analysis identified AI—especially generative AI—as a potential tool for moving beyond backward-looking risk assessments. Used effectively, the report says, it can support scenario analysis, issue identification, and probabilistic insights that help leaders anticipate disruptions, spot risk hot spots, and prioritize action.
The goal is not to abandon rigor. The article is careful on this point. Even as ERM becomes leaner and more technology-enabled, it must keep the strengths of its “cartographer past”—“discipline, rigor, and consistency.” The change is not about replacing fundamentals. It is about reorienting the function toward helping leaders understand trade-offs, anticipate uncertainty, and act in real time.
ERM has to keep pace with strategy and technology. “Banks are entering a period where strategy, technology, and risk are increasingly inseparable,” said Avani Parekh, senior vice president and executive risk advisor at TD Bank.
Change will land better if it feels authentic. Kim Persaud, managing director and head of ERM strategy, risk frameworks, and engagement at Citigroup, offered guidance for firms trying to evolve the function: “While it might be easier to just copy what others are doing, making this pivot will land better if it’s grounded in what your organization wants to be.” Her advice: tie the work to the firm’s own strategic priorities so teams know where to start and why it matters.
The broader message: ERM’s value increasingly lies not just in identifying risk, but in helping the organization move through uncertainty with more clarity and agility.
