Risk management provided little protection from recession

Nearly a third of British and Irish companies believe that risk management procedures minimised the impact of the recession.

Grant Thornton's report, A Risk Equation, found that half of the 465 businesses questioned said their review of strategic financial and operational risks did not adequately capture the impact of the downturn, against 44% who believe that it did.

Simon Lowe, head of business risk services at Grant Thornton, said: "It is clear that many companies were aware of the risks they faced but were still inadequately prepared to deal with them. Corporate risk management procedures identified key business risks before the crisis but failed to prepare companies adequately for its impact.

"That companies have spent more time addressing possible risks is encouraging but to get value from the process they also need to keep a balance between identification and response."

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