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How are companies from developed markets managing risk as they invest and operate in emerging markets? Ernst and Young surveyed over 900 companies to build a picture of best or leading practice.
Key findings from the survey included:
- Risk priorities differ by location. Developed markets focus on political, operational, and supply chain risk. Emerging markets are more likely to focus on market, competitive, and pricing risk.
- Board focus does not always translate into strategy. There is a consensus that Boards are giving enough attention to risk in these markets. However, only 41 percent of developed market companies have a risk strategy for emerging markets.
- Opinion differs on risk communication. While 71 percent of emerging market subsidiaries feel they provide sufficiently regular and robust information on risk, only 44 percent of the parent companies would say the same.
Read more results and analysis in ‘Risk Management in Emerging Markets’.
•Date: 26th October 2007• Region: World •Type: Article •Topic: Operational risk
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