Credit Risk Management Strategies
Driven by what some call "extensive" external pressure to inform partners about risks, many larger organizations have now developed "complete" enterprise risk management systems, according to a July study from North Carolina State University.
In a joint effort with the American Institute of Certified Public Accountants (AICPA), faculty at NCSU's Enterprise Risk Management Initiative analyzed survey responses from more than 600 AICPA members. Respondents were individuals who served in executive roles within their organizations, including chief financial officers or equivalent senior financial management positions.
The results showed that 62 percent of respondents report that the volume and complexity of risks have changed either "extensively" or "mostly" in the past five years, with more than 68 percent confessing that they had been caught off guard by an operational change during that same time frame.
As a result, 23.4 percent of survey respondents said they have implemented a "complete" enterprise risk management framework this year, up significantly from the 8.8 percent who had done so in 2009. Publicly traded companies and large corporations enjoyed even higher rates of adoption, north of 45 percent.
The desire for stronger risk management systems is driven significantly by external partners, according to 85 percent of respondents. However, despite executives' acknowledgement of today's risk averse culture, nearly 40 percent of organizations surveyed still lack strong risk management systems, and even those that do confessed marginal or elementary attention to strategic planning and assessments.
The results may suggest a need for more organizations to deploy risk management tools that provide more sophisticated opportunities for strategic assessments. With roughly half of survey respondents admitting an inability to meaningfully consider risk exposure when considering new initiatives, the need for better enterprise risk management software may be all the more apparent.
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Driven by what some call "extensive" external pressure to inform partners about risks, many larger organizations have now developed "complete" enterprise risk management systems, according to a July study from North Carolina State University.
In a joint effort with the American Institute of Certified Public Accountants (AICPA), faculty at NCSU's Enterprise Risk Management Initiative analyzed survey responses from more than 600 AICPA members. Respondents were individuals who served in executive roles within their organizations, including chief financial officers or equivalent senior financial management positions.
The results showed that 62 percent of respondents report that the volume and complexity of risks have changed either "extensively" or "mostly" in the past five years, with more than 68 percent confessing that they had been caught off guard by an operational change during that same time frame.
As a result, 23.4 percent of survey respondents said they have implemented a "complete" enterprise risk management framework this year, up significantly from the 8.8 percent who had done so in 2009. Publicly traded companies and large corporations enjoyed even higher rates of adoption, north of 45 percent.
The desire for stronger risk management systems is driven significantly by external partners, according to 85 percent of respondents. However, despite executives' acknowledgement of today's risk averse culture, nearly 40 percent of organizations surveyed still lack strong risk management systems, and even those that do confessed marginal or elementary attention to strategic planning and assessments.
The results may suggest a need for more organizations to deploy risk management tools that provide more sophisticated opportunities for strategic assessments. With roughly half of survey respondents admitting an inability to meaningfully consider risk exposure when considering new initiatives, the need for better enterprise risk management software may be all the more apparent.
[:es]Driven by what some call "extensive" external pressure to inform partners about risks, many larger organizations have now developed "complete" enterprise risk management systems, according to a July study from North Carolina State University.
In a joint effort with the American Institute of Certified Public Accountants (AICPA), faculty at NCSU's Enterprise Risk Management Initiative analyzed survey responses from more than 600 AICPA members. Respondents were individuals who served in executive roles within their organizations, including chief financial officers or equivalent senior financial management positions.
The results showed that 62 percent of respondents report that the volume and complexity of risks have changed either "extensively" or "mostly" in the past five years, with more than 68 percent confessing that they had been caught off guard by an operational change during that same time frame.
As a result, 23.4 percent of survey respondents said they have implemented a "complete" enterprise risk management framework this year, up significantly from the 8.8 percent who had done so in 2009. Publicly traded companies and large corporations enjoyed even higher rates of adoption, north of 45 percent.
The desire for stronger risk management systems is driven significantly by external partners, according to 85 percent of respondents. However, despite executives' acknowledgement of today's risk averse culture, nearly 40 percent of organizations surveyed still lack strong risk management systems, and even those that do confessed marginal or elementary attention to strategic planning and assessments.
The results may suggest a need for more organizations to deploy risk management tools that provide more sophisticated opportunities for strategic assessments. With roughly half of survey respondents admitting an inability to meaningfully consider risk exposure when considering new initiatives, the need for better enterprise risk management software may be all the more apparent.
[:it]Driven by what some call "extensive" external pressure to inform partners about risks, many larger organizations have now developed "complete" enterprise risk management systems, according to a July study from North Carolina State University.
In a joint effort with the American Institute of Certified Public Accountants (AICPA), faculty at NCSU's Enterprise Risk Management Initiative analyzed survey responses from more than 600 AICPA members. Respondents were individuals who served in executive roles within their organizations, including chief financial officers or equivalent senior financial management positions.
The results showed that 62 percent of respondents report that the volume and complexity of risks have changed either "extensively" or "mostly" in the past five years, with more than 68 percent confessing that they had been caught off guard by an operational change during that same time frame.
As a result, 23.4 percent of survey respondents said they have implemented a "complete" enterprise risk management framework this year, up significantly from the 8.8 percent who had done so in 2009. Publicly traded companies and large corporations enjoyed even higher rates of adoption, north of 45 percent.
The desire for stronger risk management systems is driven significantly by external partners, according to 85 percent of respondents. However, despite executives' acknowledgement of today's risk averse culture, nearly 40 percent of organizations surveyed still lack strong risk management systems, and even those that do confessed marginal or elementary attention to strategic planning and assessments.
The results may suggest a need for more organizations to deploy risk management tools that provide more sophisticated opportunities for strategic assessments. With roughly half of survey respondents admitting an inability to meaningfully consider risk exposure when considering new initiatives, the need for better enterprise risk management software may be all the more apparent.
[:tr]Driven by what some call "extensive" external pressure to inform partners about risks, many larger organizations have now developed "complete" enterprise risk management systems, according to a July study from North Carolina State University.
In a joint effort with the American Institute of Certified Public Accountants (AICPA), faculty at NCSU's Enterprise Risk Management Initiative analyzed survey responses from more than 600 AICPA members. Respondents were individuals who served in executive roles within their organizations, including chief financial officers or equivalent senior financial management positions.
The results showed that 62 percent of respondents report that the volume and complexity of risks have changed either "extensively" or "mostly" in the past five years, with more than 68 percent confessing that they had been caught off guard by an operational change during that same time frame.
As a result, 23.4 percent of survey respondents said they have implemented a "complete" enterprise risk management framework this year, up significantly from the 8.8 percent who had done so in 2009. Publicly traded companies and large corporations enjoyed even higher rates of adoption, north of 45 percent.
The desire for stronger risk management systems is driven significantly by external partners, according to 85 percent of respondents. However, despite executives' acknowledgement of today's risk averse culture, nearly 40 percent of organizations surveyed still lack strong risk management systems, and even those that do confessed marginal or elementary attention to strategic planning and assessments.
The results may suggest a need for more organizations to deploy risk management tools that provide more sophisticated opportunities for strategic assessments. With roughly half of survey respondents admitting an inability to meaningfully consider risk exposure when considering new initiatives, the need for better enterprise risk management software may be all the more apparent.
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