Developed world economies face more complex regulatory and compliance environments in the aftermath of the financial crisis, while capitalizing on opportunities in the emerging world requires companies to understand new markets and navigate attendant risks. Consequently, risk management remains at the top of the global corporate agenda.
This Executive Summary, Expectations of Risk Management Outpacing Capabilities – It's Time For Action, is based on a global survey conducted in December 2012 by the Economist Intelligence Unit and sponsored by KPMG International. It explores how effectively companies are integrating a holistic governance, risk and compliance (GRC) framework throughout their enterprise.
The survey primarily focuses on five industry clusters accounting for more than three-quarters of all respondents: financial services; technology, media & telecommunications; diversified industrials; healthcare; and energy & natural resources.
Survey respondents include more than 1,000 C-suite executives from around the world. Of them, 28% are CEOs, 18% CFOs, and 7% board members with the remaining C-suite executives comprising operations, risk, legal, technology, compliance and internal audit executives. More than half (54%) of respondents’ companies have annual global revenues of US$500m or more, with 37% reporting revenues of US$1bn or more, and 14% over US$10bn.
Survey questions centered around priority areas for assessing the evolution of GRC:
- Operationalizing/embedding the risk management program and linking it to organizational strategy
- Ensuring accuracy of the risk profile
- Clarity of roles and responsibilities through the "three lines of defense" structure
- Converging the risk and control functions across the organization
- Enhancing the aggregation and analysis of data to create an enterprise-wide view of risk
- Increasing transparency with enhanced reporting and communication tools
- Adapting to an evolving regulatory environment
For more information, download the full report below.