The Risk Institute at The Ohio State University Fisher College of Business Announces Findings from Second Annual Survey on Integrated Risk Management

COLUMBUS, Ohio, May 19, 2016 /PRNewswire/ -- Today, The Risk Institute at The Ohio State University Fisher College of Business unveiled findings from its second Annual Survey on Integrated Risk Management. The research initiative focuses on how U.S. companies view the role of risk management, how it is structured and the ways it is integrated to support business decisions. Senior leadership from more than 530 financial (23 percent) and nonfinancial (77 percent) companies both public and private were surveyed for the report.

"This year's survey demonstrates that risk management continues to evolve and firms are creating holistic and organization-wide risk management functions," said Phil Renaud, executive director of The Risk Institute. "Integrating risk management plays a key role in a firm's ability to remain competitive and create sustainable value in the current business and economic environment."

The Risk Institute is focused on connecting interdisciplinary research to practice through a unique collaboration between academics and practitioners. Along with its founding partners (Aon, Battelle, EY, Huntington, Nationwide and The Ohio State University), The Risk Institute empowers companies to recognize the opportunities and challenges of risk with the goal of leveraging risk to create value.

Respondents of the survey deliver insights across five key areas:

Organizational structure and tone at the top

• Firms are moving toward a more centralized approach to risk management, as it is a source of both growth and value. In fact, half of the firms surveyed shared that senior leadership is allocating more funds for external and internal resources. 

How risk management is integrated into business processes

• To effectively integrate risk management into business decisions, firms must recognize business processes. The three leading processes reported by survey participants were:
  • Compliance
  • Strategic planning
  • Operational business planning and management

The scope of risk management

• To limit risk taking by employees in financial and nonfinancial firms, management extensively takes steps to limit sales-at-risk (or similarly cash-flow-at-risk). They also require use of financial instruments (e.g., derivatives) as hedges rather than as speculative tools, set size limits on projects permissible without limits, and use financial hurdle rates to adjust for risk.

Risk management process

• While many respondents believe risk management is integrated across the firm, they also report that only a subset of business functions are actively involved in identifying, measuring and managing major risks.

Disruption

• Approximately 80 percent of firms did not experience a disruptive event in the last year, but if they did, most reported that the disruptions were related to regulation, cyber theft of confidential information or systems failure.

To view a more detailed summary or the full survey, visit http://www.go.osu.edu/2016SurveyPR.

About The Risk Institute at The Ohio State University Fisher College of Business

The Risk Institute at The Ohio State University Fisher College of Business brings together practitioners and researchers to engage in risk-centered conversations and to exchange ideas and strategies on integrated risk management. Through the collaboration of faculty, students and risk management professionals, The Risk Institute addresses risk at a broad cross section of industries and is dedicated to developing leading-edge approaches to risk management.

About The Ohio State University Fisher College of Business

From business as usual to business unusual, The Ohio State University Fisher College of Business prepares students to go beyond and make an immediate impact in their careers through top-ranked programs, distinguished faculty, and a vast network of partnerships that reaches from the surrounding business community to multinationals, nonprofits and startups across the globe. Our students are uniquely prepared and highly sought, leveraging Fisher's rigorous, experiential learning environment with the resources of Ohio State, a premier research university with 500,000 proud Buckeye alumni.

SOURCE The Risk Institute at The Ohio State University Fisher College of Business