Late last year, Norman Marks wrote a blog post discussing two reports concerning risk management. The first is the Aon Report, which showed a correlation between the maturity of risk management by an organization and the performance of their stock. Furthermore, the report found “a direct relationship between higher levels of Risk Maturity and the relative resilience of an organization’s stock price in response to significant risk events to the financial markets.”
The other report from Accenture surveyed 450 individuals with titles tied to risk management.
Risk Management as an Enabler of Growth
As the report from Accenture states:
“Survey respondents see risk management as enabling growth and innovation. In order to survive—and certainly to grow—every company should strive to innovate and move its business forward. Simply pushing forward without understanding and mitigating the risks ahead could ultimately lead to disaster in some form. To enable growth and innovation, effective and integrated risk management capabilities should be implemented early and throughout the process. And these capabilities are scarce – both within the companies we talked to in this research and also in the market at large. So risk management capabilities should be prioritized and focused on the things that matter to move the needle for the organization.”
That being said, the report still found risk management falling short of where it needs to be. The expectations of risk management don’t necessarily meet the actual performance of risk management—and that can often lead to trouble within the organization.