Trending: Risk Management and Bungee Jumping in Africa
Above the Zambezi River, within sight of stunning Victoria Falls, an Australian bungee jumper became one of 500,000 tourists from the past ten years to bungee jump above crocodile-infested waters. She was the first to plunge in after her cord snapped.
This dramatic YouTube video is a wake up call for risk management—one in half a million is a safe statistic for most companies, but enterprise risk management (ERM), which can reduce that even further, still isn’t embedded in most day-to-day activities, according to The Conference Board.
The report, sponsored by global management consultancy Oliver Wyman, was based on a survey of risk, audit, and finance executives with 200 companies from a range of industries. Fifty-five percent of survey participants indicated that by 2008, their corporate boards are a top driver of their enterprise risk management program, up from 49 percent in 2006.
But The Conference Board says ERM, a strategic method of understanding and managing risks, is not being integrated in corporate cultures. The progress has been mainly in early stage efforts, such as creating a risk inventory and assessment process. That means potential trouble—key ERM benefits in managing the overall corporate risk profile and portfolio are still unrealized at most companies.