Traditional benchmarks such as financial and operational performance top the concerns of senior risk managers of global corporations over a 12-month time horizon, while some highly publicised issues such as taxation, environment and diversity lag well behind, according to an enterprise risk management (ERM) report from the Centre for Risk Studies at Cambridge Judge Business School and the Institute of Risk Management (IRM).
The report entitled, Risk Management Perspectives of Global Corporations, shows that financials (revenues, profits, share price), operational performance, reputation/brand, and regulatory standards and reporting were each scored by risk managers at or near the top index level between 9.0 and 10.0 (out of 10) in terms of importance or priority.
By contrast, some issues that have been very much in the news scored far lower in the report’s index: legal liabilities including taxation at 4.0, environment and sustainability at 3.2, natural catastrophe and climate at 2.5, and gender and diversity at 1.2.
The Centre’s Executive Director, Dr Michelle Tuveson, said: “Global corporations feel forming an integrated view of their risks is challenging, as it must consider not just…
