The survey results, based on the responses of more than 60 financial controllers of FTSE 350 companies, show that risk management is receiving a more high-profile consideration in the boardroom. Chief executives or managing directors are increasingly assuming responsibility for the risk management process, reflecting increasing scrutiny by institutional investors, other stakeholders and analysts. This trend also reflects a broadening in perceptions of what constitutes risk. The survey said that risk management in 1999 tended to focus on financial risk but now looks at business, operational and all other significant risks as well.
A total of 70% of survey respondents perceive risk-management as a beneficial tool to gain competitive advantage and enhance business practices. This is an increase of 38% from 1999. Companies that are using business management to implement risk management have, in 75% of cases, largely integrated risk management into the way they do business, the survey said.