Nexia, a London-based consulting company, surveyed small to midsize businesses (SMBs) about compliance and operational risks in its Global Risk Management Report. It found that nearly two-thirds of respondents already have a formal process in place for risk assessment.
Those surveyed identified operational risks and compliance as the top risks facing their companies to date. Glenn Davis, a partner with CohnReznick LLP, explained:
Risk management has become critically important as businesses are challenged to remain competitive while grappling with uncertain operational and financial conditions… Regardless of the size of the entity, the risks are broadly the same, but the ramifications are much greater for small and mid-sized organizations.
Of the two-thirds of businesses who reported having a risk assessment process, only 19 percent said their risk assessment was ineffective against mitigating IT risks. The results of the survey are promising. At least SMBs are actively considering risks and most are devoting budgets toward attempting to assess issues to trying to mitigate them prior to an occurrence.
Respondents named “social media, succession planning and natural or man-made disasters” as the issues they are least prepared to deal with.