Risk management continues to climb up the corporate agenda

Respondents to Sword Active Risk’s annual ARM Global Customer Survey have confirmed that risk management is increasingly important in their organizations.

In the UK, 93 percent of risk managers reported that risk has increased in importance and profile within their organization in the last 12 months. In the US 75 percent claimed that risk had increased in importance. In both the UK and US less than 5 percent of respondents felt that risk had reduced in importance or profile. One of the top areas for concern on both sides of the Atlantic was the increase in vulnerability to geopolitical risk. 

These initial findings from the survey, which was conducted during the ARM Global Conferences in the UK and US, concurred with the latest report from the Chartered Institute of Procurement & Supply (CIPS) Risk Index. The report, which is produced by CIPS in association with Dun & Bradstreet, states that while the Risk Index has stabilized over the last two quarters, it is still at an all-time high. The report highlights concerns in geopolitical and cross-border supply chain risks. 

Keith Ricketts, vice president of marketing at Sword Active Risk commented; “The initial findings from our annual customer survey show that concerns regarding geopolitical and supply chain risk within large global organizations is increasing. With the continuing drive for efficiency businesses are now ultra-connected with massively complex supply chains of which they have often have little visibility, making them vulnerable to disruptions. We have seen this developing trend during the three years that we have conducted the survey, and it serves to highlight the importance to companies with a complex supply chain, that they need to undertake ‘supply chain mapping’ and ‘what if’ exercises, if they are to maintain visibility of their extended supply chain risks.”

Respondents to the survey included risk managers from over 80 global companies in energy, oil & gas, critical national infrastructure, construction, transportation and other sectors.