Risk management has been a function on the rise over the past ten years, with 93% of C-suite executives stating that it has impact on their organization’s business strategy. However, recent research reveals startling gaps in the ways that companies are integrating risk management into their strategic planning processes.
For example, only 19% of companies rate their ERM process as effective in identifying risks that have not yet happened but could occur. Another opportunity warranting greater attention is the application of analytics: when asked to identify the top areas where their companies could benefit from improved use of data and analytics, executives ranked risk mitigation and risk identification first and second overall.
How does your company integrate enterprise risk management with strategic planning? In what ways can risk be used more effectively to strengthen strategic plans and protect companies from the unexpected?