More than three quarters of risk management
executives are concerned about economic uncertainty, according to a
PwC survey of 1,000 risk management leaders.
The report, Risk in Review, refers to
“a new era of risk for businesses” created by economic turmoil,
advancing globalisation and rapid technology progress.
The survey found the most common strategies
acquired by leaders to tackle risk includes shifting the risk
management focus from internal to external, from operational to
strategic and from bottom-up to top-down.
Increased regulation, renewed financial
volatility and growing completion also top the ranking of growing
concerns.
“2011 marked a year of reckoning and many
companies are still struggling to create an effective approach to
managing the ever-widening risk landscape.” PwC US risk assurance
practice leader Dean Simone said.
“Businesses are scrambling to fix weak links
in their systems stemming from non-traditional risks such as social
media and digital technology, to dealing with the realities of
operating in today’s global marketplace.
“In this new risk era, corporate boards and
senior management have a crucial role to play to ensure they set
the right culture and align their strategy to risk
imperatives.”
PwC has recommended risk management approaches
and separately launched an online tool to enable companies to
benchmark their risk profile.
