A recent study of global risk professionals show more business leaders view the risk management process as essential to maintain success, according to The Asset.
In the 2013 Global Risk Management Study by Accenture, 98 percent of survey takers said they prioritized risk management more today than two years prior.
Of respondents, 99 percent said compliance was the most prominent risk to handle, followed by reputation management with 95 percent. The survey gathered responses from 446 global C-level executives who are responsible for risk management decisions. It revealed almost all respondents believed risk management was important, however there is a gap between their risk perception and their actual ability to control these potential disruptions, which may include risk assessment procedures and other frameworks for increasing solvency.
"In our 2013 research we found that both risk technologists and regulatory change program managers are reported as being in short supply," the study said. "To develop skills beyond the core risk disciplines we found organizations increasingly using innovative techniques, such as rotational training and combining risk and strategy roles, to help improve these qualities as well as to help improve retention rates in an increasingly competitive talent market."
Global risk professionals were shown to incorporate risk management in the majority of their business functions including budgeting and forecasting (92 percent), financing and mergers and acquisitions (87 percent) and strategic planning (84 percent). Legal risks were considered the most likely to increase in the next two years by the majority of respondents at 62 percent, followed by business risks with 22 percent and regulatory requirements with 49 percent. In order to handle these challenges, businesses must be able to seek out professionals who are able to effectively improve their risk management.