It should come as no surprise to the risk management community: the risk management function is consistently under-utilized within the co??????????rporate structure. However, senior management may finally be getting the message.

In the 11th annual Excellence in Risk Management survey conducted by Marsh and RIMS, only 20% of C-suite execs surveyed say they use their risk management function to its fullest abilities. Interestingly, 93% of C-suite execs believe that risk management carries some or significant impact in setting their organizational business strategy. Also, 76% says that their organizations treat risk management as a key strategic function.

So why the disconnect between the importance of risk and the actual utilization? Part of it could be that risk management is stepping back, content to stay behind the scenes. Or perhaps it’s that risk management is having difficulty breaking through to the C level, which may not realize how often risk management should be involved.

What’s your take? Why do you think risk is still an under-utilized function?

What have you done to improve that? How has it worked? 

What advice would you give risk managers on getting a seat at the table?

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Comments

  • Henry Good May 3, 2014 at 2:24 am

    Risk Managers spend too much time “waiting for the invitation” and becoming technical insurance experts rather than spending time understanding their company and their industry as the CFO’s/CEO’s are asking. That is why the disconnect — risk managers think they are involved and Senior management wishes they were really involved!

  • Patricia O’Connell May 5, 2014 at 5:06 am

    Interesting take — that risk managers “won’t take the risk.” Would be very interested in hearing your thoughts about how to eliminate the disconnect.