Risk response

As a result of the recession two thirds (66 per cent) of companies have changed or improved their risk management processes, including improving existing procedures, identifying new risks and broadening the role and responsibilities for risk management.

The findings come from an ICAEW*, whose head of corporate governance, Valerie Jones, said: “The area of risk management will continue to come under close scrutiny this year. It is clear that businesses have responded to the challenging conditions. Effective risk management does not have to require huge resources but it does need a commitment from the board and clear communication of responsibilities.

“Companies should seize the opportunity while boards are more receptive to risk management initiatives. Those that report clearly and communicate their risk management initiatives have much to gain. The time is right to extend the sphere of activity of risk management and to focus on people risks.”

A copy of Improving Risk Management in Response to the Changing Economic Climate can be found at www.icaew.com/bcm. CMI’s latest business continuity research findings are available online at www.managers.org.uk/bcm2010.

* Institute of Chartered Accountants in England and Wales

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