Even the largest and most successful businesses have something to learn when it comes to managing risk.
“Companies are working harder to identify potential risks to their business, but many still fail to incorporate those risks into strategic plans or inform the board of directors,” writes Wall Street Journal senior editor Emily Chasan.
The survey found that fewer than one in five executives say their companies effectively manage newly identified strategic risks, with most companies failing to implement procedures to lessen risk.
Two out of three companies in the survey (which included large public and private companies with global operations) said they do not have a process for ensuring that strategic risks are included in the company’s strategic plans, while 43% reported to not have an established method for reporting risk to their board.
Risk management software enables companies to take the guesswork out of big decisions and to plan strategies with confidence. Tools like Palisade’s @RISK are used across industries to identify and minimize risk.