A Risk Management Benchmarking Survey in 2010 showed that 65% of businesses conduct no form of risk analysis prior to making major corporate decisions. While on 42% have any form of risk management audits or procedures. However, a study in the Accenture Global Risk Management Study in 2011 showed that for 98% risk was now seen as a higher priority than just two years ago. With US companies impacted by the global supply chain interruption after the Japanese Tsunami they realized that with an increasingly globally connected world with risk management is something that is of critical importance. Consider hacking and its implications for IT security, the financial crisis and I could go on.
You don’t have to be an international company to gain from risk management, it can benefit any organization. Jim Collins in his book ‘How the Mighty Fall’ lists the ‘denial of risk’ as one of the five stages of organizational decline.
The question is do you consider how to manage risk in your business, to mitigate risk?
Has risk management become a higher priority for YOU?
For more information on how to apply Risk Management see this earlier blog