GITNUX MARKETDATA REPORT 2024

The Most Surprising Risk Management Statistics And Trends in 2024

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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.

The Most Important Statistics
77% of companies suffered operational surprises in the past 5 years due to unidentified risks.

This statistic serves as a stark reminder of the importance of risk management. It highlights the fact that, even with the best of intentions, companies can be blindsided by risks that they have not identified or prepared for. It is a call to action for businesses to take a proactive approach to risk management and ensure that they are not caught off guard by the unexpected.

The global risk management software market size is expected to reach USD 23.57 billion by 2028.

This statistic is a testament to the growing importance of risk management software in the global market. It highlights the need for businesses to invest in risk management solutions to protect their operations and ensure their long-term success. As the market size continues to expand, it is clear that risk management is becoming an increasingly important part of any successful business strategy.

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.

Conclusion

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.

References

0. – https://www.acfe.com

1. – https://www.ey.com

2. – https://www.portal.mypearson.com

3. – https://www.mckinsey.com

4. – https://www.info.metricstream.com

5. – https://www.rmahq.org

6. – https://www.grandviewresearch.com

7. – https://www.pwc.com

FAQs

What is risk management?

Risk management is the systematic process of identifying, analyzing, assessing, and mitigating potential risks or uncertainties within an organization or project to minimize their negative impacts and maximize opportunities.

What are the main components of risk management?

The main components of risk management include risk identification, risk analysis, risk evaluation, risk treatment or mitigation, and risk monitoring and review.

What is the difference between qualitative and quantitative risk analysis?

Qualitative risk analysis is focused on prioritizing risks based on their likelihood and impact, using subjective judgments, expertise, and experience. On the other hand, quantitative risk analysis aims to assign numerical values to the likelihood and impact of risks, providing a more objective and data-driven approach to risk assessment.

What are some common risk treatment strategies in risk management?

Common risk treatment strategies include risk avoidance, risk reduction or mitigation, risk transfer (such as insurance or contracts), risk acceptance, and risk exploitation (for positive risks or opportunities).

What is the role of contingency planning in risk management?

Contingency planning plays a critical role in risk management by providing a proactive framework for identifying and preparing for potential risks. It involves creating backup plans, alternative courses of action, and additional resources that can be utilized in case a risk event occurs, to minimize disruption and ensure smooth recovery.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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