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Strategic risk is o�en cited as an essential part of effective risk management. But,
where does strategic risk actually rank in your risk management plan?
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We asked a panel of risk management professionals how strategic risk stacks
up at their organizations.
1
23
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44% of respondents said their organizations' focus on strategic risk outweighed operational risk.44%
strategic risk outweighsoperational risk
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"Exploring Strategic Risk." (2013.) Deloitte. Retrieved from http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Governance-Risk-Compliance/dttl-grc-exploring-strategic-risk.pdf
In a 2013 Deloitte survey, 81% of respondents said their organizations had an explicit focus on managing strategic risks.
81%explicitly focus on
managing strategic risk
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Organizations are clearly focused on strategic risk. But, what drives the disconnect in strategic risk taking
priority over operational risk?
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"The difference has been noted, and we are in the conceptual phase of reengineering a process."
"Management is inundated by day-to-day operational issues. They have little attention to explore the big picture."
"The methodology for operational risk management is more developed in the company."
Survey respondents explained the disconnect:
These responses are samples from the complete dataset.
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Of organizations focused on operational risk, only 19% have both measuring and monitoring in place for strategic risks.
19%have a method for measuring and monitoring strategic risk
57%have a method for measuring and monitoring strategic risk
At organizations where strategic risk outweighs operational risk, 57% report having a method for both measuring and monitoring strategic risks.
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"Our strategic map has four segments: financial, clients, processes, and learning/growth.
"Top-down review by senior business and risk management is integrated with the bottom-up view."
Those having a method for measuring and monitoring strategic risk say:
These responses are samples from the complete dataset.
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48% report that leadership uses risk profiles when choosing between two initiatives with identical expected returns, irrespective of the organization's focus on strategic versus operational risk.
48%of leadership use
risk profiles
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These statistics came from the Workiva webinar Strategic Risk—The Next Frontier of Risk Management, which was originally broadcast March 19, 2015.
To view the on-demand webinar, click here.
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