A survey conducted by Marsh and RIMS, the results of which were released at the RIMS 2013 conference, revealed that although senior executives and risk management professionals opinions on the role that risk management should play in strategic planning are “more aligned than ever” there is yet to be full strategic integration.
According to the survey, a majority of C-suite executives and risk professionals agreed that the top reason why management is included in strategic planning and executive activities is “to identify and assess risks arising from the strategic plan”.
In addition, 46 percent of C-suite and 40 percent of risk professional respondents agree that the function should provide strategic risk input to the strategic planning process. However, only 15 percent of risk professionals and 20 percent of executives said that the risk manager is a full member of the strategic planning and/or executive teams. According to the report’s authors this suggests that “risk management has yet to be fully integrated strategically.”
Carol Fox, director of the strategic and enterprise risk practice at RIMS, commented: “this general move toward risk professionals adding more value to organizations’ strategic decisions is encouraging. Yet, there is still much room for growth, and gaps remain between what senior leaders and risk professionals expect from the risk function in its delivery of strategic value.”
Marsh, RIMS, risk management, captive insurance