Survey of Global Executives Reveals Business Threat of Poor Risk Oversight
Tuesday, 08 25 2015, Category: Insurance and Reinsurance, Country: World
Businesses are putting themselves in danger by neglecting or avoiding formal risk management processes, according to a new study by the Enterprise Risk Management Initiative at North Carolina State University on behalf of the London-based Chartered Institute of Management Accountants (CIMA).
The report’s authors consulted more than 1,300 executives worldwide, and found that 70 percent felt their risk management process was not “mature.” Just 40 percent are satisfied with the reporting of information about top risk exposures to senior management.
“When we ask our members to list their current topics of focus, ‘better risk management’ is always near the top,” said Gillian Lees, CIMA’s head of research and development.
“The wider business world needs to hear this call. As we near a decade from a global crash triggered by poor understanding of risks, it’s depressing to see how little has changed,” said Lees. “This is the equivalent of not bothering to lock your house after a burglary. Identifying possible threats to a business is essential for securing the firm’s future. Adapting to future risks and changes can give a company a competitive advantage. Failing to do either means sleepwalking towards disaster.”
Source: Insurance Journal