Canadian Underwriter

CEOs extol virtues of ERM, but implementation is slow to catch on

January 23, 2004   by Canadian Underwriter

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Global CEOs understand the need for enterprise-wide risk management (ERM), but say there are many barriers to full implementation, according to the 7th annual Global CEO Survey by PricewaterhouseCoopers.
The survey found CEOs confident of future growth in revenue (80% of the 1,400 surveyed expect growth in the short to medium term), but concerned over a host of risks. These include increased competition (cited by 63%), over regulation (59%), currency fluctuations (48%), loss of key talent (45%) and terrorism (40%).
While CEOs view themselves as risk-takers, they see the world as increasingly risk-adverse.
And while two-thirds of CEOs says they have basic risk management practices in place, only one-third have achieved full risk management implementation. The barriers to ERM include availability of information, timeliness of information and effectively trained implementation personnel.
"There is no question that enterprise risk management allows CEOs to take more aggressive risks, and, ultimately, enhance the value of their organizations," says Samuel DiPiazza, global CEO of PWC. "It is crucial that all organizations implement successful enterprise-wide risk management systems, especially if they expect to thrive in these uncertain times."

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