Inadequate Risk Management Implementation

 
 

risk management implementationA survey by DuPont Sustainable Solutions found that business leaders are failing to effectively implement risk management programs in three key areas.

First, executives are not placing enough emphasis on the risks that could have potentially catastrophic impacts on their companies. While 78% of respondents agree that low incident rates do not mean reduced risk, two-thirds still said they feel safe when incident rates are low or approaching zero. This narrow focus on incident rates means they may not be taking into account broader organizational threats.

Second, many leaders address gaps in risk management processes by simply adding more processes, even though they agree that processes and systems alone are insufficient to properly manage risk.

Third, executives reported a disconnect among staff when it comes to risk management—25% strongly believe that front-line personnel are not aligned on the top risks facing the organization and 55% said there was some misalignment at the senior executive level, suggesting a need for greater engagement among the two groups

 
Morgan O'Rourke

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About the Author

Morgan O’Rourke is editor in chief of Risk Management and director of publications for the Risk & Insurance Management Society, Inc. (RIMS)

 
 
 

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