Risk Management an Increasing Focus for Corporations

August 11, 2010 (PLANSPONSOR.com) - A Korn/Ferry Executive Quiz survey reveals that corporate leadership attention to risk management has significantly increased as a result of the global downturn and the many high-profile risk management failures in the financial services industry.

Fifty-nine percent of executives surveyed said that the recent scrutiny on corporate reputation risk has had a positive effect on their Board’s view of reputation management and crisis preparedness, with only 28% saying that the increased attention on risk management has had no effect. More than half of respondents (58%) believe that their company has improved the quality and timeliness of internal oversight and reporting to the Board to better assist in risk management and planning.  

According to a press release, 57% of senior executives surveyed said that directors and executives are spending more time dealing with risk management.  Twenty-six percent said there had been no change at all, while 14% revealed that their company is actually spending less time on risk management.   

The majority of executives surveyed (60%) do not believe that increased government oversight has been a driver for improving risk management at their organizations.   

The survey indicates that risk analysis and ongoing management are becoming increasingly critical areas of focus and importance to organizations and C-suite executives across the world, the press release said.  While 20% of organizations have a Chief Risk Officer from among the executives surveyed, many noted that the direct responsibility for risk management at their organizations starts at the top – 43% identified the Chief Executive Officer as directly responsible, with 19% pointing to the Chief Operating Officer.    

The Korn/Ferry Institute Executive Quiz survey is based on a global survey of executives registered within the firm’s online Executive Center, ekornferry.com. Respondents from more than 65 countries, representing a spectrum of industries and functional areas, participated in the most recent Executive Survey in July 2010.