@Risk

In the wake of the financial crisis, businesses have had to reinvent the way they look at risk.

For proof, take a look at the results from a new survey from the Society of Actuaries (SOA) and its partners.  In the study, 90 percent of the business experts polled said they have implemented, or plan to implement, an enterprise-wide risk management approach.

In addition, 70 percent of respondents reported that their organization has, or is planning to have, a Chief Risk Officer (CRO), and most (62 percent) say their companies have also shown an increased emphasis on risk modeling.

More than 450 professionals in the insurance, consulting, management, and financial service industries participated in the survey, and when asked to rank risk management issues for the new year, they came up with this list (in order of importance):

• Financial risk

• Systemic risk – or risk affecting an entire financial market or system

• Regulatory risk

• Pandemic risk

• Terrorism risk

Survey respondents also feel more clarity and communication regarding risk is necessary for stakeholders. 46 percent of those polled either disagreed, or were not sure, that their firm’s external risk disclosures effectively convey an understanding of the key risks inherent in shareholders’ investment.

For more detailed information about how to communicate ERM with stakeholders, see the five guiding principles which the SOA has compiled here.