Over the past two weeks, I’ve been discussing the results of the Accenture 2011 Global Risk Management Survey. If you’ve missed my previous posts, I suggest going back and reading them:
In this post I would like to focus on the Risk Masters: the top 10 percent of the almost 400 companies in our survey that demonstrated superior risk management practices. By highlighting their practices, I hope to give you practical examples that you can use to build your company’s risk capabilities.
Some of the practices that differentiate the Risk Masters are as follows:
- They use risk management to create shareholder value by directly aligning risk to business performance.
- Risk executives are directly involved in key decision making, especially in the areas of strategic planning, measuring business and management performance, and setting objectives and incentives.
- They manage regulation and compliance risks so that the process improves both regulatory relationships and business performance. They have taken their risk management processes beyond a compliance-only mindset.
- They employ robust, forward looking analytics and risk modeling. Risk Masters measure more of the risk types, and they demonstrate a higher commitment to analytics and risk modeling.
- They have appointed a chief risk officer (CRO) or its equivalent with sufficient visibility, authority, and resources to build the risk management process and influence risk decision making across the organization.
- They continually invest in upgrading their risk management capabilities, including people, processes, models, data quality and systems.
- They integrate and embed risk management practices and culture across the organization.
We’ve taken that insight provided by the Risk Masters and created an interactive, online diagnostic tool—the Accenture Risk Management Diagnostic—for you to see how your company’s risk management capabilities compare with those of the Risk Masters.