Tuesday, August 02, 2005
CEOs Placing Greater Emphasis on Managing Risk; Companies Best Prepared to Tackle Financial Reporting and Credit Risks
Despite growing concern to manage risk, most companies struggle to take action
Oversight Systems Inc. today announced the results of the 2005 Oversight Systems Financial Executive Report on Risk Management, a survey of U.S. financial executives. The Oversight Systems report shows the majority of financial executives surveyed say their CEO is very interested in risk management, but corporate America has yet to act to address this concern.
The survey reveals that 68 percent of financial executives say their CEO is placing greater emphasis on the management of all types of risk on a holistic basis. Three out of five (60 percent) say their company has an enterprise risk management approach and philosophy that considers various interactions among different types of risk.
"It’s encouraging to see this level of interest from the C-suite in the management of corporate risk, but the challenge in the coming years will be for corporate America to transform that interest into action that leads to better management and an improved bottom line," said Patrick Taylor, CEO of Oversight Systems.
The survey shows that critical elements of risk management are not in place. Only 35 percent of financial executives say their company has formally trained executives and business line managers to assess the probability of various types of risk. Most (55 percent) companies do not have a member of senior management with explicit responsibilities to manage risk. Again the majority of those surveyed (55 percent) say their company does not have a widely communicated definition of risk.
posted by Brian Moran @ 9:42 AM