Mar 16, 2013
From the Healthcare & Life Sciences Institute
This executive summary, based on a global survey conducted in December 2012 by the EIU and sponsored by KPMG International, explores how effectively companies are integrating a holistic governance, risk and compliance (GRC) framework throughout their enterprise.
The principal findings of the survey, which create the basis of this report, are as follows:
- Risk management is viewed as making a key contribution to the business; however, organizations need to improve how they measure risk management’s return on investment, and how they communicate its processes, value and effectiveness to key stakeholders
- Executives continue to struggle with assessing enterprise-wide risk exposures
- The C-suite sees risk management as critically important but few organizations are articulating their risk appetite
- Regulatory pressure and changes in the regulatory environment is the issue posing the greatest threat to respondents; global economic and political instability is seen as the greatest risk scenario threat
- Respondents believe business units are more adept than risk management departments, compliance, and internal audit in assessing and managing risk
- Lack of human resources/expertise impedes convergence of risk and control functions
- Weak incentive structures impede risk-based decision-making
- Spending to enhance risk management will continue to increase over the next three years
The survey included responses from more than 1,000 C-suite executives from around the world.