Despite overwhelming evidence of business disruptions that can occur from failing to manage various risks, company executives are not adequately identifying and preparing for risks that can have potentially catastrophic implications on business operations, according to DuPont Sustainable Solutions’ (DSS) annual global survey of company executives. If left unchanged, a company’s operational performance, business continuity, right to operate and ability to deliver consistent value to shareholders could all suffer.
Challenges
“Old ways of looking at risk are insufficient in today’s global business environment if executives want their organizations to be sustainable and prosper,” said Davide Vassallo, Global Managing Director of DuPont Sustainable Solutions. “Running a successful business is more complex today than ever before, with executives facing numerous challenges on a daily basis both within and outside their organizations. With these challenges come numerous associated risks that executives must successfully anticipate and mitigate. In order to transform an organization, executives should integrate risk into the organizations business strategy to engage employees, increase productivity and drive competitive advantage.”
Global benchmark
The findings of DSS’ 2018 global operations risk management survey of executives show that while there is general agreement and acknowledgement among participating executives of important characteristics of a successful risk management program, leaders are failing to implement those characteristics in their organizations.
DSS’ annual global risk management survey of executives benchmarks and measures the maturity of operational risk management programs in companies across numerous industries, and examines the challenges they face in effectively managing risk to improve business performance. Executives from more than 350 companies participated in the survey, which was conducted between May and August. One-half of survey participants (52 percent) were senior executives (CEO, CFO, etc.) and one-half (48 percent) were from the executive director level. Sixty percent of participating companies are in high-hazard industries such as mining and metals, oil and gas, and manufacturing. Roughly two-thirds of participating companies have a global presence. Forty-four percent are headquartered in North America, 27 percent in Asia-Pacific and 24 percent in Europe.
