Executives Falling Behind on Risk Management
Most executives are aware of the risks their business faces, but they are failing to keep pace with them. One study found that 70 percent of executives believe the risks to their company are greater in number and more complicated than in previous years.
Meanwhile, only a quarter of those executives felt their risk management plan was robust enough to handle the threats to their business. This highlights the disconnect many business owners experience when it comes to business challenges and how to handle them.
Strategic Planning and Leadership
This growing issue is likely the result of failing to incorporate risk management into strategic planning for the company. If executives do not see how risk management advances company goals, it is hard to see its value. Slowly but surely, risk management drops in priority.
A lack of leadership for risk management is often another part of the problem. Less than half of surveyed executives reported having a designated senior staff member to manage risk. Given the increasing complexity of business threats and challenges, companies need dedicated managers to evaluate risks and develop solutions. Without risk management leadership, it falls on individual departments to handle hazards to their section. This results in multiple methods of managing risks with varying degrees of effectiveness.
It can be difficult for business executives to overhaul their risk management strategies. They may feel overwhelmed or unsure where to start making changes. The Reilly Company can help businesses navigate these necessary modifications. Contact us to learn more about how our risk management solutions can help advance your company.