By Rob Starr, Content Manager, Big4.com
Fewer than 25 percent of executives report that their organizations continuously monitor risk. A new Deloitte and Forbes Insights survey also reveals forty-one percent of respondents said that they saw the global economic environment as the most important source of risk over the next three years, and nearly one-third put government spending and budget into that category.
More than 50 percent of executives believe that regulatory, technological and geopolitical risk will increase in volatility, and 55 percent of executives surveyed reported that their organizations will revamp their risk approach within the next 12 months; roughly nine in 10 (91 percent) reported that they plan to reorganize their approach to risk management in some form or other over the next three years.
Despite advances in risk-related technologies as well as concern about unstable risks, the survey found that automation tools and tools used for continuously monitoring risk are underutilized. Most monitoring is done periodically, on a monthly, quarterly, biannual or annual basis.
Mark Carey, partner, Deloitte & Touche LLP and leader of the U.S. Governance and Risk Strategies services for commercial and public sector industries comments:
“Based on the findings of this survey, and our interactions with clients, we believe technology has the potential to play a breakout role in the management of risk, but many companies are still behind the curve in this area,” he said. “It is encouraging, however, that more than half the respondents said their companies were planning to invest in continuous risk monitoring, and the tools that are available should not only help them with risk management overall, but also increase efficiency and decrease costs over time.”