Skip to Main Content
Access your saved content
The Accenture 2013 Global Risk Management Study finds there are large gaps between expectations of the risk function’s role and its perceived performance.
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.
The study examines the perspectives and concerns of executives at nearly 450 companies in eight industry groups and in three major geographic regions. The 2013 Global Risk Management Study is the third in a series. The first study was undertaken in 2009 and a second study was released in 2011.
It explores not only current trends in risk management but the challenges that lie ahead, and how organizations are planning (and investing) to meet these challenges. The study also looks at how risk masters apply risk management capabilities to achieve competitive advantage.
Rising external pressures across industries and regions are impelling organizations to give more emphasis to risk management and integrate it in their decision making. Our 2013 Global Risk Management Study finds nearly all surveyed firms give higher priority to risk management now than they did two years ago.
But there is still room for improvement. Risk management functions today are grappling to achieve regulatory compliance while delivering business value. They have invested heavily in developing risk capabilities and now want to see a return.
For every organizational goal we surveyed, there are large gaps between expectations of the risk management function’s role in meeting broader goals and its perceived performance. The largest gaps are in regulatory compliance, managing reputation and risk-adjusted performance management. Organizations have, on average, developed their compliance management effectiveness but continue to be challenged by the pace and scale of regulatory change.
Risk managers are also striving to increase their agility in light of the next wave of risks, such as threats to reputation. Looking ahead to 2015, organizations will seek to meet these challenges by focusing on risk management talent, turning data into insight, and taking a more proactive approach to regulation.
Companies are raising the profile of risk management, increasing the involvement of the executive board and enhancing the risk management function’s organizational role. Ninety-six percent of risk management owners now report directly to the organizational role. More than eight out of 10 risk management owners now report on risk regularly to the board.
In spite of remarkable progress, many organizations may want to do more to enhance capabilities to cope with an increasingly uncertain risk landscape, to achieve compliance while delivering value and to move from a reactive to a proactive stance on risk.
Comparing the current capabilities of respondent organizations with those desired for 2015 allows us to identify three key areas of focus:
Improving the ability to turn data into insights. High-performing risk management organizations are better at embedding analytics into management processes. They are doing so by improving data quality and developing actionable dashboards for management. They are also cultivating risk technology’s “human element” through training and other measures to make findings from risk analytics actionable and insightful.
Finding and retaining risk management talent. Developing and keeping quality risk management talent is an increasingly crucial goal. This is also central to the goals of risk analytics (above) and compliance efficiency (below): both risk technologists and regulatory change program managers are reported as being in short supply. High-performing risk management organizations use innovative techniques like rotational training and combining risk and strategy roles to improve retention.
Improving compliance efficiency and effectiveness. Insufficient proactivity and lack of an integrated response to regulation are top barriers to better compliance efficiency. High-performing risk management organizations take an integrated approach to managing compliance.
Since publication of the first Accenture Global Risk Management Study in 2009, it is clear that many organizations have made great strides in developing risk management functions, but others have been left behind. Drawing lessons from our findings, we recommend four main actions that organizations can take to help reach their risk capability goals for 2015:
Treat risk as a “people game,” developing risk staff with business acumen. If the risk management function is to play its elevated role effectively, it may want a risk staff with a deep understanding of the broader business.
Look ahead, as new types of risks are relentless, and develop capabilities that match tomorrow’s risks. Organizations may want a forward-looking plan for risk capability development.
Manage regulation through a transformational lens. It is important to take a step back to help ensure regulators’ requirements are leveraged to build a risk management function that delivers business value.
Focus on insight, not just data and analytics, and develop the “human element” of risk technology. It is important not to miss the forest for the trees: Technology, data and analytics are only valuable if their insights can be put into action.
The study examines companies across five major industry sectors: Banking and Capital Markets; Insurance; Energy and Utilities; Postal and Administration; and Healthcare and Life Sciences. In addition to the overall report, we have developed sector-specific reports addressing each of these sectors.
September 17, 2013
Skip Footer Links