Risk management provided little protection from recession
Risk management procedures helped few businesses through the 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.”
Further reading:
Who
should watch the auditors?
Hedge
accounting: hedging their bets