2018 Survey.pdf

The 2018 State of Risk Oversight report provides an overview of enterprise risk management (ERM) practices among organizations of all types and sizes. Key findings include:
1. 60% of respondents believe the volume and complexity of risks is increasing, and 65% have experienced an operational surprise due to unanticipated risks.
2. 68% of boards of directors are pressuring senior executives to increase management involvement in risk oversight.
3. Only 22% of respondents describe their risk management as "mature" or "robust", and 31% have complete ERM processes in place.
4. 67% of large organizations and 63% of public companies have designated a chief risk officer or equivalent.
5. Less than 20% of organizations view their risk management process as providing important strategic advantage.
6. 45% of organizations have a risk management policy statement, and 43% maintain risk inventories at an enterprise level.
7. 82% of large organizations and 89% of public companies discuss written reports about top risks at least annually.
8. 41% of respondents are not satisfied with the nature and extent of internal reporting of key risk indicators.
9. 66% of organizations have not included explicit components of risk management activities in compensation plans.
10. Barriers to implementing enterprise-wide risk management processes include the belief that benefits do not exceed costs and other pressing needs.