Senior executives consider risk management to be very important and the majority of respondents said it is included in strategic planning at least annually.
However, 20 percent of executives said there was no process at their company to aggregate risks, an essential part of any strategic plan. And although most respondents rate the maturity of their risk management programs fairly high relative to peers, risk quantification and aggregation is rated lower than other aspects of risk management.
Most industries have made some improvements to their systems for aggregating risk data since the onset of the financial crisis. Today, nearly half of executives say their risk management function performs a bottom-up risk assessment process at least annually. For organizations with diverse businesses, it is critical to have a robust, bottom-up risk assessment to fully understand business risks.