All organizations face factors that make it uncertain whether they will reach their goals. Risks that are not identified and managed properly may have a negative effect on companies and cause human, material, financial or reputational damage. While it is utopian to think that all risk factors can be controlled, companies that have a structured approach to risk management are better able to navigate troubled waters.
The survey shows that companies which have implemented a risk management strategy are primarily driven by a need for compliance (71%), company policy (64%) and demands from customers (63%). Half of the companies (55%) were motivated by financial benefits.
In daily operations, risk management was practised by 37% of board members, 46% of the top management teams and 40% of middle management. Larger companies with more than 1,000 employees naturally have a stronger focus on risk management than smaller organizations, with 77% stating they have a dedicated risk management team.
Several risk management standards, guidelines and frameworks exist in order to support the implementation of best practices in an organization. However, the survey indicates a low level of familiarity with these in that only 1 in 3 companies (36%) use at least one standard, guideline or framework (even partially).