Published yesterday, the survey aimed to evaluate current attitudes to risk management and internal audit in Europe. Taking a cross-section of the top 1,000 European companies, the survey revealed that although 80% of companies have implemented risk-management strategies, 60% are not confident of their worth for identifying, evaluating and minimising risk.
‘There is a mismatch between planning and execution,’ said Omar Saleh, E&Y European director of business risk consulting. ‘The results were encouraging, but the danger is that people will become complacent. Running risks like this would make companies more susceptible to takeovers and could stop them maintaining their size and market competitiveness.’
While risk management was assumed to be widespread, the reality is less rosy, the survey stated. One-fifth of companies have failed to implement any strategy, and a further third have no formal risk identification and registration.
Companies which fail to link strategic plans with real action could harm shareholder value, success rate with mergers and acquisitions, and their ability to compete in a global market.
Saleh said risk management can allow companies to make more of the opportunities that are available.
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