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Enterprise risk management may be popular in concept, but it is still struggling to gain traction in the real world, especially among smaller companies. According to a recent survey by the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants, 45 percent of U.S. respondents - many of whom are CFOs - report having no ERM framework in place and no plans to implement one.
What's more, of companies with ERM systems in place, only 1.5 percent characterize their company's risk-oversight processes as "very mature" or "robust." The bulk, 84 percent, rate their company's risk-oversight processes as ranging from "very immature" to "moderately mature."
The state of ERM isn't much better in Europe, according to the survey. Nearly 40 percent of European companies report they are not using, and do not plan to use, ERM, while only 8.2 percent of the ones that are consider their processes robust.
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