Australian companies score well in ERM, but 50/50 for built-in risk culture

risk-management/cent/market-volatility/chief-executive-officer/

21 September 2011
| By Angela Welsh |
image
image
expand image

Australian organisations benchmark above average against their global peers when it comes to enterprise risk management (ERM) practices, yet only half have built a risk culture into their organisation, a survey has revealed. 

The Institute of Actuaries ERM survey, released yesterday, found that 81 per cent of actuaries willing to compare Australia with other countries ranked Australian organisations as performing "above average" or "the middle of the pack" for ERM practices and management of risk culture. Only 11 per cent said they believed Australia lagged the rest of the world. 

Despite this positive result, only 52 per cent of organisations appear to have an embedded, formalised risk culture communicated to staff. Only 37 per cent of members surveyed said their organisation's approach to building and fostering a risk culture was "good" or "very good".

Institute of Actuaries chief executive officer Melinda Howes said ERM was increasingly important in the current macro-economic climate. 

"Continuing global financial market volatility and a spate of natural disasters in recent times highlight the need for effective enterprise risk management," she said. 

Respondents identified the top three benefits of effective ERM implementation as: minimising losses to the organisation (75 per cent); maximising return on equity (64 per cent); and managing expectations of customers, staff and investors (54 per cent). 

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 1 day ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND