Private companies more focused on risk management

The need to deal with catastrophic and project risks is driving an increased focus on risk management by private entities, according to a survey of more than 200 public entity organizations in Europe.
More than half of the respondents had experienced some type of significant disaster over the last five years, the survey conducted by Marsh and PRIMO Europe found.
Additionally, more than 75% noted that the volume and complexity of the risks within their organization had increased over the last five years, according to a Marsh release.
The pressure of external parties is also a driver of risk management.
More than half of the respondents noted that stakeholders had put pressure on organizations to provide more information about risks in areas such as finance, political reputation, risk management and legislation affecting their organization.
The risks the respondents regarded as most significant over the next 18 months were environmental risk (73%), public liability (65%), business continuity (63%) and partnership risks (59%), the release points out.
“The recession has had a clear impact on the way public sector bodies approach risk,” Philippe Auzimour, head of Marsh’s public sector practice in Europe, the Middle East and Africa, said in the release. “Over half the participants to the survey say that, because of the downturn, risk management is now seen as more important at senior levels in their organization.
“A similar proportion say that the downturn has prompted their organization to review its approach to risk management and 22% say their board’s appetite for risk has grown.
“In addition to planning for a major disaster, public sectors organizations’ risk management is under scrutiny from a growing list of stakeholders.”