Risk management is an essential part of any successful business. It helps organizations identify, assess and manage potential risks that could have a negative impact on their operations. To better understand the importance of risk management, it’s important to look at some key statistics related to this topic. According to PwC Global Risk Survey 2019, 77% of companies suffered operational surprises in the past 5 years due to unidentified risks; around 61% of organizations’ enterprise risk management (ERM) programs are less than 5 years old; 29% of businesses expected major risk events to impact their organization within 2 years; and 36% planed increase investment in risk management and compliance over the next two years.
The global market for risk management software is also growing rapidly with estimates suggesting it will reach USD 23.57 billion by 2028 according to Grand View Research Inc., while 87 percent believe their organization’s processes are not widely embraced as reported by The Association Of Certified Fraud Examiners 2018 Report To The Nations survey results . Additionally only 25 percent feel very satisfied with their organization’s capabilities according KPMG Global Risk Landscape report from 2017-2018 which also found that just 27 percent systematically plan for interdependencies between different types or sources of risks faced by them.. Furthermore 60 percent lack an integrated approach as per research conducted by Riskonnect , 45percent have documented formal appetite policies but 73 % cited economic uncertainty as most significant threat facing them today based on Pearson Education study findings from 2016-2017 period . Finally 70 % experienced one major event during last two year period according KPMG Global Risk Landscape report from 2017-2018
These numbers demonstrate how critical effective risk identification and mitigation strategies can be when managing organizational resources effectively – something all businesses should strive towards achieving.
Risk Management Statistics Overview
36% of organizations plan to increase investment in risk management and compliance in the next 2 years.
This statistic is a telling indication of the importance of risk management and compliance in the modern business world. It shows that organizations are recognizing the need to invest in these areas in order to protect their assets and ensure their operations are compliant with applicable laws and regulations. As such, this statistic is an important one to consider when discussing risk management statistics.
87% of risk management professionals believe their organizations’ risk management processes are not widely embraced.
This statistic is a telling indication of the lack of enthusiasm for risk management processes among risk management professionals. It suggests that organizations are not taking the necessary steps to ensure that their risk management processes are being properly implemented and embraced. This is a concerning statistic, as it implies that organizations are not taking the necessary steps to protect themselves from potential risks. This statistic is a reminder that organizations need to take risk management seriously and ensure that their processes are being widely embraced.
45% of organizations have a formal risk appetite documented in their enterprise risk management policy.
Having a formal risk appetite documented in an enterprise risk management policy is an important step in the risk management process. This statistic is significant because it shows that a large portion of organizations are taking the necessary steps to ensure that their risk management strategies are well-defined and effective. By having a formal risk appetite documented, organizations can better identify, assess, and manage risks, which can help them to make more informed decisions and reduce their overall risk exposure.
73% of firms cited economic uncertainty as the most significant risk to business.
This statistic is a telling indication of the current state of the economy and the impact it has on businesses. It highlights the importance of risk management in order to protect businesses from the potential risks posed by economic uncertainty. This statistic serves as a reminder that businesses must be prepared to face the challenges of an ever-changing economic landscape.
76% of companies have or plan to implement an enterprise risk management (ERM) program.
This statistic is a testament to the importance of enterprise risk management (ERM) programs. It shows that the majority of companies recognize the value of having an ERM program in place and are taking steps to ensure that their organization is protected from potential risks. This statistic is a powerful reminder that risk management is an essential part of any successful business.
33% of organizations do not have a designated Chief Risk Officer (CRO).
This statistic is a telling indication of the lack of risk management focus in many organizations. It suggests that a significant portion of organizations are not taking the necessary steps to ensure their operations are secure and their risks are managed. This could lead to costly mistakes and potential disasters down the line. As such, this statistic is a stark reminder of the importance of having a designated Chief Risk Officer (CRO) in place to ensure that risks are properly identified and managed.
The statistics presented in this blog post demonstrate the importance of risk management for businesses. It is clear that companies are increasingly recognizing the need to invest in effective risk management strategies, as evidenced by the high percentage of organizations with ERM programs and those planning to increase investment in risk management and compliance over the next two years. However, there is still a significant gap between what organizations should be doing when it comes to managing risks effectively – only 25% feel very satisfied with their organization’s capabilities while 91% believe integrated enterprise risk management can lead to better identification and mitigation of risks. This highlights an urgent need for more comprehensive approaches towards identifying, assessing, monitoring and responding to potential threats posed by operational surprises or major events within a given timeframe.
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