Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘global risk management study’

Action is not optional: Risk Management Study

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.

Click to access Accenture-Risk-Management-Research-For-An-Era-Of-Greater-Uncertainty-Report.pdf

The value of this study is initially revealed in the Contents, including the following topics:

  1. Current market pressures
  2. Becoming a high-performance risk organization
  3. Risk management talent
  4. 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.

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