85% of global executives think risk mgt necessary: Accenture
Press Trust of India / New Delhi Jul 08, 2009, 16:00 IST
With the corporate world reeling under economic crisis, majority of executives across the world believe they need to overhaul their approach to risk management to improve business performance, says a study.
According to a study by Accenture, about 85 per cent of corporate executives surveyed think that they need to change their risk management policies if the lessons of the economic crisis are to be used to improve business results.
Accenture's 2009 Global Risk Management study noted that 40 per cent of respondents considers that their companies have already increased or would raise their investments in broader risk management capabilities in the next six months.
The report added, nearly 31 per cent of respondents said their companies are currently considering increasing their future investment in risk management capabilities.
"Executives could improve their organizations' performance and position themselves for economic recovery by linking and balancing risk management and performance management to aid their decision-making and increase shareholder returns.
"Being effective at this also requires companies to integrate their risk management capabilities enterprise wide," Accenture Finance & Performance Management practice Managing Director Dan London said.
Risk management techniques today require updating in view of their failure to tackle the global credit crisis. Risk management is no longer IF . It is WHEN andf hence statistical tools are inadequate to meet the challenge.
But Risk management is not rocket science either as Mr Geithner the U.S. treasury secretary seems to suggest. At best it is complex predictive analytics. For new tools http://www.slideshare.net/SandipSen/business-risk-case-study-ba31
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