It should come as no surprise to the risk management community: the risk management function is consistently under-utilized within the corporate 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?