Magazine article Risk Management

Strategic Risk Gains Prominence

Magazine article Risk Management

Strategic Risk Gains Prominence

Article excerpt

Although risk management has increasingly taken on a strategic role within many organizations, there is still uncertainty about where primary responsibilities for executing risk management strategy reside and whether risk management is being used to its full potential, according to a study released by Marsh and RIMS (the publisher of this magazine).

The 11th annual Excellence in Risk Management study, titled "Risk Management and Organizational Alignment: A Strategic Focus," found that 93% of C-suite executives and 87% of risk professionals agreed that risk management has an influence on setting an organization's business strategy. Three-quarters of executives and 60% of risk professionals confirmed that their organizations treat risk management as a key strategic function.

But when it comes to who has the primary responsibility for executing risk management approach and strategy, there was some disagreement. Although 47% of risk professionals thought this was their job, only

16% of C-suite executives agreed. Instead, 39% of executives looked to the CFO to execute risk strategy, while others favored the CEO (16%), chief counsel (12%) and COO (10%).

Nevertheless, 69% of the C-suite and 75% of risk professionals agreed that their organizations were managing risk effectively. But there is room for improvement. About half of C-suite executives and 43% of risk professionals thought the organization was not taking full advantage of the capabilities of the risk management function. …

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