Egan Associates’ KMP Report on risk management, “The Rise and Rise of Risk” is now available for download.
In the wake of the global financial crisis, risk management has gradually become a top priority in most industries.
Its evolution has been helped along by the emergence of new risks that have damaged the reputations and finances of organisations across the globe, such as a rising prevalence of cyber-security breaches, the increasing popularity of social-media communications, escalating conflicts in war-torn regions, extreme commodity price fluctuations and the impact of social factors including investors’ and consumers’ reactions to climate change and environmental concerns.
An Accenture survey of 450 global risk professionals from 2013 reported that 98% had seen an increase in the perceived importance of risk management at their organisation.
Risk management has also taken on a larger role in decision making at the Board level, becoming a tool not only to avert disaster, but also one to direct the choice and successful execution of growth strategies.
A 2014 global survey by Clifford Chance and the Economist Intelligence Unit of 320 Directors found that risk was steadily becoming a greater issue for Boards.
For proactive Boards, risk management is not an option but a necessity for growth, sustainability and continuing success.
For those considering investing or not supporting investment, the consequence of these decisions needs to be examined under a risk lens. Not all risks are bad. They need to be carefully considered, well priced and well managed.
The role of risk management is also an important consideration in assessing the importance and accountabilities of a position, whether that position is at the Board level or further down in the organisation. Egan Associates does not believe that risk has to this point been adequately recognised in work value considerations or reward, both at management and Board level.
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The compilation of this research has been the primary accountability of Suzanne Wohlthat whose work at Egan Associates straddles research support to consulting projects, assistance with the integrity of our data analytics function and the editing of our newsletter.