I recently came across a study on Risk Management with some interesting results:
- Almost 64% of Risk Masters (organizations moving toward risk mastery) indicate that their risk management capabilities provide competitive advantage to “a great extent”.
- Almost three in every four Risk Masters consider the risk organization critical to reducing operational, credit and market losses.
- Risk Masters integrate risk management capabilities across the organization.
- Risk Masters are more likely to concentrate risk management in the hands of a chief risk officer. This suggests that Risk Masters more readily acknowledge the importance of having a C-level risk executive as an influential part of top management.
- Risk Masters from their peers is their commitment to creating and infusing an awareness of risk exposure and the means to mitigate risks – as well as more detailed tacit knowledge and training – across the corporate culture.
- Risk Masters emphasize the importance of making risk management part of everyone’s daily responsibilities.
The chief risk officer for one global energy company concluded: “A high-quality and efficient risk management function is among the top strategic goals of the company, ranking second only to growth and profitability.”