Excellence in Risk Management XI – Risk Management and Organizational Alignment: A Strategic Focus
Our 11th annual Excellence in Risk Management report, produced collaboratively by Marsh and RIMS, was compiled from online responses received from nearly 600 risk professionals, c-suite executives, and others involved in risk-related functions.
Unknown and as yet untapped opportunities exist for risk management professionals and their organizations to realize substantial benefits from mature risk management practices. It is no longer news that risk itself is a priority at the senior leadership levels.
While risk management is playing a more strategic role within organizations than ever before, many are not using the full potential of the function, according to the 11th annual Excellence in Risk Management survey, published by Marsh and RIMS.
93% of c-suite respondents to the survey indicated that risk management carries either some or significant impact on setting their organization’s business strategy with 76% confirming that their organizations treat risk management as a key strategic function. However, when asked whether their organization uses the risk management function to its fullest abilities, only 20% of c-suite respondents answered affirmatively.
Among the findings from the report:
- More than 90% of c-suite respondents said risk management impacts business strategy.
- Only 25% of risk professionals feel their companies use risk management to its fullest ability.
- There is a gap between risk professionals’ and the c-suite’s prioritization of cyber risk.
- The c-suite views risk mitigation and risk identification as key areas in which the use of data and analytics can be improved.