This informative study by Accenture is based on a survey of 446 organizations, with the phrase “Action is not optional” as a key driver for its insights.
The value of this study is initially revealed in the Contents, including the following topics:
- Current market pressures
- Becoming a high-performance risk organization
- Risk management talent
- Four things to do differently:
- Treat risk management as a people game
- Look ahead, as new risks are relentless
- Manage compliance through a transformational lens
- Focus on insight, not just data and analytics
Key excerpts from the study:
- It is easy to say what the risks are, but if you do not have the instruments to see them or hear them coming, that is a problem.
- 96% of risk management owners now report directly to the CEO.
- “Risk Masters” are organizations with highly developed risk capabilities, likely to have a CRO, active Board involvement, adequate resources and budgets, integration of risk management in strategic decision-making, focus on strategic and emerging risk, talented staff and training programs and are ahead of the curve in using risk analytics.
- Weighted priority on compliance requirements ahead of business value and newer hazards.
- Risk management ownership is an executive board-level position, moving from the CFO to the CRO and CEO.
- The goal is to infuse risk management comprehensively into business processes.
- The least developed risk capability is risk organization and governance.
- HIgh-performance risk management organizations have a people strategy of identifying, training and rewarding risk management talent.
- Focusing on the “next war” may require a strategic plan for the risk management function, an integrated approach and direct involvement of senior management.
All Multinationals should have a prioritized objective for global risk management, and this study is instrumental in developing “Risk Masters” capabilities.