How does your company approach risk management? If yours is one that takes a big-picture view, it could see increased profit margins down the line, according to a recent survey of 1,200 organizations across 37 countries.
73% of executives feel that risks to their companies are on the rise, according to PriceWaterhouseCooper’s recent survey, “Risk in Review: Decoding Uncertainty, Delivering Value.” But only 12% of the companies that responded demonstrated qualities that marked them as “risk management leaders” — those that take a holistic view of risk and involve risk management in the business at a strategic level.
Among those companies, 55% recorded increased profit margins, and 41% achieved an annual profit margin of more than 10%. So what sets risk management leaders apart from the rest? Some highlights:
- At the statement “We can see how risks interconnect and cascade,” 70% of risk management leaders said yes, compared to 23% of non-leaders.
- Risk leaders also demonstrate greater cross-functional alignment, particularly regarding:
- Finance (93% vs. 58%)
- Internal audit (95% vs. 65%), and
- Corporate compliance (93% vs. 55%).
- They’re more likely to involve risk analysis in decision-making (67% vs. 43%).
Click here to read the complete report PDF.