While nearly all surveyed firms give higher priority to risk management now than two years ago, there is still much room for improvement. Risk functions today are struggling to move from regulatory compliance to delivering business value. They have invested heavily in risk development and now want to see a return.
There are large gaps – especially in compliance, managing reputation, and risk-adjusted performance management – between expectations of the risk function’s role in meeting broader goals and its perceived performance.
The priority task will be to turn enhanced risk capabilities into a tool enabling the broader organization to meet crucial strategic and operation goals. Risk managers also strive to increase their agility in light of the next wave of risks yet to come. Looking ahead to 2015, organizations will seek to meet these challenges by focusing on risk talent, turning data into insight, and taking a more proactive approach to regulation.
A shifting regulatory landscape creates uncertainty and complexity. Our research shows that, among the industries we surveyed, banking and energy companies are most likely to foresee rising risks over the next two years, and that, aggregated across all industries, legal and business risks are the top threats.
Watch Steve Culp, Global Managing Director, Accenture Risk Management, discussing the global implications of the report in the video segments below.