Businesses embracing strategic risk management
Governing strategic risk is one of the biggest issues faced by businesses as they attempt to manage an ever-changing corporate environment. Making sure that your firm’s strategy is robust enough to survive these risks is a growing concern for many managers.
Fortunately, firms in the Asia pacific region appear to be making the most of strategic risk management, according to a recent report from Deloitte.
As part of the company’s most recent study of strategic risk, Deloitte asked firms how well they felt that risk management had been integrated into their business strategies. On a scale of one to five, the vast majority described themselves as being between a three and a five.
Only nine per cent described themselves as a one or a two, compared to 31 per cent who identified as a three and 51 per cent who saw themselves as being a four or five.
Once these global figures were broken down by region, the Asia-Pacific region scored much higher than average, with almost two thirds of respondents seeing themselves as a four or five. By contrast, slightly more than a third ranked themselves in the one to three category.
This was only slightly behind the Americas, while Europe, Africa and the Middle East had the lowest risk management, with 49 per cent in the one to three category.
While these numbers are a positive sign for strategic risk management in the Asia Pacific region, there are still opportunities to improve. This is especially true for the third of firms in the area who ranked their risk management initiatives between a one and a three.
One solution to this gap is to integrate risk management into your company’s strategic management software. This can allow vital risk assessment to be factored into your business strategy as it evolves.