As the economy becomes more complex, organizations find themselves confronting an increasing array of risks that can significantly—and negatively—affect their businesses. To understand how organizations around the world manage emerging risks, the AICPA and CIMA, in conjunction with NC State University, surveyed more than 1,300 executives worldwide and released the CGMA report, Global State of Enterprise Risk Oversight: Similarities and Differences in Opportunities for Improvement.
Some of the key findings from the report highlight the need for the development of risk management leadership—particularly in light of the many types of risk an organization might face. Sixty percent of organizations acknowledge that they face an increasing number of risk issues, yet less than 35 percent have a formal enterprise risk management (ERM) program in place. In this same vein, 70 percent would not describe their risk management oversight as mature, and 40 percent or less are satisfied with risk exposure reporting to senior management.