The Need to Overhaul Risk-Management Approach
Interesting Accenture survey: The 2009 Global Risk Management Survey results shows that 85% of corporate executives believe their companies need to overhaul their approaches to managing risk. 40% of managers said their organizations had already increased their investments in risk management or planned to do so in the next 6 months; another 31% said their companies were considering future increases in investment.
Accenture conducted a survey of 260 chief financial officers, chief risk officers and other executives involved with risk management at large companies in 21 countries in Africa, the Asia Pacific region, Europe and North and South America. The purpose of the survey, which was conducted via the Internet between November 2008 and February 2009, was to understand the challenges companies face with regard to their enterprise risk management capability as well as the approaches, tools and structures that help some companies manage risk more successfully than others.
(85%), alignment between their companies' strategies and appetites for risk (85%), and risk culture (82%).
Survey respondents also identified a number of common problems with their risk-management functions, including:
- Inadequate availability of timely risk, finance and business data (80 percent);
- Lack of integration and aggregation across all risk types (78 percent); and
- Ambiguous risk responsibilities between corporate and business units (78 percent).
Further, the study found that broader and better integrated risk management capability can have a variety of impacts on companies, including on: their ability to achieve competitive advantage (cited by 53 percent of respondents); their reputation in the public and with media (53 percent); rating-agency ratings (53 percent); their ability to achieve profitable growth (53 percent); their ability to secure positive analyst commentary (50 percent); and their ability to reduce cost of capital (47 percent).”
Managing Risk for High Performance in Extraordinary Times report is available here.
