The Risk Management Status Quo Isn’t Cutting It
In a heightened risk environment defined by record inflation and geopolitical instability, you might assume that most companies are actively leveraging data to lower their risk exposure and impacts.
But a Forrester Consulting study commissioned by Dun & Bradstreet, incorporating the viewpoints of more than 400 risk management, finance, procurement, and compliance professionals, reveals that this assumption is way off target. The study, “Change the Culture of Risk Management to Increase Business Resilience,” highlights a big disconnect between what respondents believed their risk management capabilities to be and what those capabilities have actually achieved… or not achieved, as was often the case.
Many survey respondents stated that their enterprise risk management (ERM) efforts were mature and informed by a broad range of risk data. But they also reported significant challenges managing rising risk levels and numerous adverse impacts from discrete critical risk events to their revenue, operations, and brand reputation.
Some sample results from the survey:
And this is just the tip of the iceberg.
Among the study’s key findings: Despite being a top priority, many enterprise risk management programs don’t focus on the most consequential risks. They often overlook systemic risk and aren’t effectively aligning resources with anticipated risk impacts. Other key findings of the study discuss what companies need and what they stand to gain by changing their approach to risk data and management.
And how exactly should companies change their risk management approach? This guidance is included in the study as Key Recommendations — specific takeaways to help finance and risk professionals better leverage risk data and technology and improve business resilience.
Download the full study to learn how to change the risk management status quo and protect the business more effectively in the new risk environment.
Methodology: Forrester conducted an online survey of 423 risk management decision-makers at organizations in the United States, Canada, and the United Kingdom to evaluate the culture of risk management and how companies are using risk data to not only manage risk, but also generate forward-looking insights to create value at a strategic level. Survey participants included decision-makers in finance; supply chain/procurement; and governance, risk, and compliance roles. The study began in June 2022 and was completed in August 2022.