2016 The State of Risk Oversight: NC State Poole College o..
2016 The State of Risk Oversight: NC State Poole College of Management
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The Risk Environment and the State of ERM Maturity:
Executives recognize that the overall risk environment is increasingly more challenging:
57% believe that the volume and complexity of risks have changed “extensively” or “mostly” in the last five years. This holds true for organizations of all sizes and types.
63% admit they were caught off guard by an operational surprise “somewhat” to “extensively” in the last five years. This percentage was even higher for large organizations and public companies.Even though the risk environment is creating tremendous challenges, the overall level of risk oversight is relatively immature and not providing strategic value:
Only 25% believe their organization has a “complete formal enterprise-risk management process in place,” and that finding has not risen over the past four years, suggesting that organizations have not made significant strides in risk oversight maturity.
25% describe their organization’s level of risk management maturity as “Mature” or “Robust.” That percentage grows only to about one-third of the larger companies, public companies, and financial services organizations.
56% indicate that their organization’s risk management process is “not at all” or “minimally” viewed as a proprietary strategic tool that provides unique competitive advantage, suggesting that organizations continue to struggle to position ERM for strategic value.