Ignoring risk management endangers firms, study says

If you do not have a formal process of risk management in place, you are putting your business at risk, according to the new report, "State of Enterprise Risk Oversight, which was conducted by the Initiative for Risk Management Business the North Carolina State University the name of the designation Chartered Global Management Accountant (CGMA).

While the new edition of the report states that 60 percent of councils seek greater involvement of senior management to prepare for possible crisis. Resources However, many organizations, especially small and medium enterprises, are not dedicated to ensuring a process of risk management is in place.

The report, which includes results from a study of more than 1,300 executives worldwide, found that about 60 percent of organizations increasingly complex issues of risk 'were faced five years ago.

Despite this, less than 35 percent of organizations have launched a management program formal business risk (ERM) - a framework to identify and prepare for future threats to the basic business model of an organization and a plan strategic.

"With three out of five companies facing increasing risks, and regulatory, shareholder and organizations are beginning to demand more effective risk management agencies is essential to the management teams to take a closer look successful their programs risk management and make them more robust, "said Noah Ash, vice president of external relations, the AICPA.

"Identification with rigor and deal with potential threats is crucial for long-term success of a company, the pressure to test the effectiveness of risk mitigation plans and provide a competitive advantage in the marketplace."