The ERM Initiative at NC State, in partnership with the AICPA, has released its 2022 The State of Risk Oversight: An Overview of Enterprise Risk Management Practices, reflecting insights from 560 executives about the state of ERM maturity in their organizations.
The 13th annual report reveals that executives believe risk volumes and complexities remain high, given ongoing concerns related to the war in Ukraine, rising inflation, the competition for talent, lingering supply chain disruptions, ransomware threats, and a host of other triggers. Recent realities are indicating a need for real change in how organizations oversee the constantly evolving risk landscape.
Fewer than one-third of the respondents describe their organization’s approach to risk management as mature or robust, even though a majority describe their risk culture as “strongly risk averse” to “risk averse”. Might there be a disconnect?
This 2022 State of Risk Oversight Report highlights over 40 different aspects of risk management practices that readers can use to benchmark their risk management processes along several dimensions. Additionally, the report also offers a list of questions that executives and boards can use to assess their organization’s risk readiness and to help pinpoint tactical next steps for strengthening risk management processes. The questions cover nine areas including:
- Drivers for enhanced risk management
- Overall state of risk management maturity
- Strategic value of risk management
- Impact of culture on risk management
- Assignment of risk management leadership
- Risk identification and risk assessment processes
- Risk monitoring processes
- Board risk oversight structure
- Board reporting and monitoring
The report also includes a number of Calls for Action to help executives and boards identify actions they can take to enhance the strategic value of their risk oversight.
In addition to providing analyses for the full sample, the report includes sub-analyses for large organizations (revenues > $1B), public companies, and not-for-profit organizations.
Download the report here.
