Deloitte’s 2019 survey of risk management
Reimagine risk: Thrive in your evolving ecosystem
An overwhelming majority of executives now acknowledge risk management’s strategic importance. The task now before risk management functions – and CROs – is to rise to the challenge by equipping themselves to provide business-focused insight.
Risk management is growing in importance, but challenges persist
Our survey results pointed to four central findings:
- Organizations that invest in risk management, and specifically link risk management to the attainment of the most important strategic and financial goals, typically achieve higher relative growth. Organizations with highly integrated risk programs, integrated across the enterprise, are realizing value from risk management. Such organizations typically exceed profitability targets more often and achieve higher growth than those with less integrated programs, which may struggle to realize value and achieve desired outcomes.
- Risk management has become elevated – and more strategic – in most organizations. Most executive teams grasp the importance of risk management in the attainment of corporate goals and the value of more strategic approaches—and CROs are pursuing more strategic roles in the organization.
- The case for appointing a CRO or equivalent who reports to the C-suite or board is strong. Those that give risk management a seat at the table at C-suite and board meetings are more likely to have high-performing programs.
- Organizations have clear opportunities to cost-effectively enhance risk management through technology. Although technology can enable risk modeling, tracking, and sensing, many risk management functions are underutilizing these technologies. In particular, surveyed CROs rate risk identification and risk assessment – activities that technology can readily support – as among the most time-consuming risk management activities.
In the report, we explore each of these findings in more detail.