Results of "Top Risk Issues Survey" Released by Global Risk Community
Premier Network for Risk Professionals and Service Providers Surveyed Over 100 Risk Professionals Worldwide to Gauge Risk Management Priorities. The survey provides a snapshot of the main issues facing the risk management industry.
By: Boris Agranovich
PRLog -- Amsterdam, Netherlands, December 6, 2010 - Risk management is clearly on the agenda of many executives, given the global financial crisis and its attendant effects on business practices. Business executives the world over are now realizing the importance of identifying, mitigating and accounting for risk in their business decisions, much to the relief of risk management professionals, who have been promoting the cause for years.
A recent survey of over 100 top risk professionals provides a snapshot of the main issues facing the risk management industry in the wake of the financial crisis.
All respondents were asked to identify the risk management standard which their firm follows, choosing among several widely used models. By far, the COSO, or the guidelines set forth by the Committee of Sponsoring Organizations of the Treadway Commission, and the ISO31000, a generic set of principles and guidelines on risk management from the International Organization for Standardization, were the most popular. Less common was the AS/NZS, developed by the Standards Australia and Standards New Zealand Technical Committee.
• 49% of the respondents’
• 44% adhere to the guidelines set forth by the ISO31000
• 7% of those surveyed said their organization follows the AS/NZS standard
To gauge the main drivers of risk management in their organizations, respondents were asked to indicate the multiple external drivers of the need for increased risk management. Having to adhere to legal, regulatory and compliance requirements was by far the biggest driver for making risk management a main priority, with 70% respondents choosing that option.
• A catastrophic event was a further driver of risk management in 26% of respondents’
• Clear requirements from shareholders were a contributing factor in another 26%.
• Pressure from the market was an external trigger for 22%.
• Major increases in insurance premiums were a significant factor for only 12%.
A further indicator of the increasing importance of risk management is the extent to which it has C-suite sponsorship. While 41% report to the board, 37% report to the CEO and 22% to the CFO, with 5% reporting to other executives, demonstrating that risk management is a main priority at the highest levels.
Finally, risk professionals were asked to identify which functions their risk management organization performed. Not surprisingly, 91% indicated that their RM organization was responsible for risk identification. In addition, RM organizations fulfilled the following functions:
• Monitoring (76%)
• Risk Quantification (73%)
• Escalation (59%)
According to Global Risk Community founder Boris Agranovich, “the findings of the survey provide important information that is highly relevant to all interested parties.” The results demonstrate the extent to which the field of risk management is gaining attention as Europe continues to deal with the consequences of the global recession.
In response to the increased attention being accorded to risk management, the Global Risk Community continues to provide members with a unique forum to forge new relationships, collaborate to address pressing issues and shape the direction of the industry amidst changes to the financial system.
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