Only 10% of Zurich survey respondents say their executive management has been “highly effective” at creating a strong risk management culture

Although risk management is perceived to have increased in importance over the past three years, only 10% of those surveyed by Zurich said their executive management is “highly effective” in creating a strong risk management culture.
Zurich collaborated with Harvard Business Review to survey more than 1,400 business executives. Participants were asked whether or not they believed risk management has increased in importance since the financial crisis of 2008.
The need to link risk information to strategic decision-making was identified as extremely important. But only 14% felt that their organization did that extremely well.
Survey respondents identified the top barriers to better risk management as:
•over-focusing on compliance rather than fundamental processes (42%);
•lack of strong management support (41%); and
•reluctance to de-silo related information (35%).
Natural disasters and financial and economic crises topped the companies’ risk lists.
“A striking finding of the study, however, is that beyond the ‘headline’ risk events of natural disaster and economic slump, the other most-often-cited risks are largely operational matters that underpin the companies’ ability to deliver on their strategic goals and maintain a viable, competitive organization going forward,” a Zurich release said.
“More than half of the companies mentioned risk related to talent retention and acquisition as having risen significantly. Corporate and/or brand reputation has become a more significant concern at half of the companies, while business planning and continuity as well as legal risks were mentioned by nearly half.”