A new report from PricewaterhouseCoopers (PwC), which recently surveyed 1,940 business executives from 37 countries, found 75 percent of respondents believe the number of risks facing their company is continuing to grow, Business Insurance reported.
Even though businesses are aware of potential risks, the changes being made by companies are creating capability gaps in their risk management process. The 2014 Risk in Review report showed businesses are centering on a risk mitigation culture by expanding processes through constantly identifying and monitoring risk, the source reported.
The survey showed that 56 percent of respondents found regulatory complexity and scrutiny to be a growing concern for their risk mitigation system, and 24 percent worried about business transformation processes.
Operational risk management taking precedence
The survey showed that other capability gaps included operational risk management, which 18 percent of business executives found it to be an issue. According to a Harvard Business Review webinar, businesses have to be aware that operational risk is immediately created with one employee.
Businesses have to avoid common pitfalls that can result by hiring inadequately skilled workers, as it could create more problems for business operations. Errors are a common human mistake and businesses have to be ready to answer them, but addressing issues that are created by continuous mistakes is essential for mitigating operational risk.
Organizations know they have to constantly be aware of operational risks that could affect business continuity. Businesses that have the ability to increase their awareness to possible incidents surrounding them can ensure operations will continue and face limited risks. According to the PwC survey, 84 percent of respondents admitted they have plans to further develop a better risk awareness culture within the next 18 months by prioritizing risk management on all levels of the company, Business Insurance reported.
Nearly 82 percent of respondents also said they plan to update their risk monitoring process within the next 18 months. According to the report, 79 percent of respondents said their organizations will plan to integrate risk and business strategies.
As risk mitigation practices grow, businesses are looking for ways to protect their assets through innovative risk management software that can monitor incidents so they can better respond during a crisis.