A new study of Fortune 1000 companies in the U.S. reveals that many executives don't know enough about what enterprise risk management (ERM) means to adequately evaluate the scope of the risks their companies face or to determine how to address those risks. According to FOXBusiness.com, only 6 percent of respondents "expressed any discomfort with their existing ERM efforts."
The survey, conducted by Harris Interactive for Accretive Solutions, revealed that respondents view a variety of risks as top concerns for their companies. Those risks include the declining dollar, vulnerability resulting from unprotected or inadequately protected wireless connections, and risks created by global competition and a shortage of IT talent.
Of the results, Accretive Solutions executive vice president and chief financial officer, Dirk Hobgood, says:
Obviously, ERM is meant to cast a wide net across a company's policies and practices. When executives educate themselves about their needs and truly embrace a full ERM approach, the benefits can be very powerful and tangible. The results of our survey were surprising on a number of levels, but brought into sharp focus the fact that many executives who are responsible for ERM may not know exactly what they're trying to accomplish.