Magazine article Risk Management
Executives Unhappy with Risk Management
According to a study conducted by Chicago-based Aon last October, very few executives are satisfied with their company's approach to risk management, and this concern was evident well before Enron's collapse went public. The study surveyed 416 officers in charge of risk management and conducted eleven follow-up interviews with CFOs, treasurers and heads of risk management in Europe and North America.
According to the study, European companies are slightly ahead of North America in integrating risk management, largely due to Europe's corporate governance rules and guidelines that call for more integrated monitoring and reporting of risk. Whether in Europe or North America, however, only 5 percent of those surveyed were "very satisfied" with risk practices.
Of the firms surveyed, more than half were "less than satisfied" with their risk management practices and only 12 percent had fully integrated risk management functions (while 39 percent planned to implement an integrated system over the next three years).
Thirty-eight percent of those surveyed said the primary reason to develop an integrated system was to respond better to the company's full range of risks. …