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One-third of organizations lack complete enterprise risk management plans

Written on Oct 7, 2022

As global organizations face an increasingly complex risk environment, an enterprise risk management (ERM) report found that the majority have insufficient approaches to risk management and immature ERM processes. The report found that approximately 60% of global business leaders agree that the volume and complexity of corporate risk have increased “mostly” or “extensively” over the last five years. However, over two-thirds of respondents do not have complete ERM processes in place. 

The 2022 Global State of Risk Oversight: Managing the Rapidly Evolving Risk Landscape, issued by the AICPA, CIMA and North Carolina State University (NC State)'s Enterprise Risk Management (ERM) Initiative, includes insights from a survey of 747 global senior business and finance leaders conducted in 2022. The survey measured executives’ assessments of the level of maturity in their organization’s proactive management of these risks through adoption of enterprise risk management processes. 

Increased uncertainty and rapidly evolving events — including geopolitical shifts, supply chain disruptions, competition for talent, increased volume of available data, climate change concerns, and lingering effects of a global pandemic — are continuing to drive the complexity of risk challenges senior executives across the globe must navigate. Even when faced with these complexities of risks, only between one-third to one-half of respondents claim to have a complete ERM processes in place: 

  • Europe & U.K.: 33% 

  • Asia & Australasia: 41% 

  • Africa & Middle East: 29%,  

  • U.S.: 32% 

  • Global Average: 34%