KPMG: Over 7 out of every 10 organizations have adopted Enterprise Risk Management.
ZAVENTEM - Enterprise Risk Management is becoming increasingly popular with Belgian enterprises and other organizations. More than 7 out of every 10 organizations indicate that they employ some form of Enterprise Risk Management. However, bottlenecks certainly exist: organizations still make very inadequate use of data and technology in Enterprise Risk Management, and a true risk management culture has not yet fully taken hold. So says a study conducted by service provider KPMG.
Enterprises and other organizations experience a wide variety of risks daily: (geo)political and economic uncertainties, technological developments, changing laws and regulations, disruptive business models, data leaks, cyber attacks and more. Successful businesses must weather these risks, but for sustained growth structural Enterprise Risk Management is crucial.
Els Hostyn, KPMG partner in Belgium: “When an organization develops objectives and a strategy, they clarify the direction in which they want to go. However, in real life, everything will not go according to the plan: obstacles always exist. Enterprise Risk Management aims to map these potential obstacles, address them as they occur and even anticipate them.”
Many management teams and executive boards are working on an Enterprise Risk Management program. Politicians and society at large are expecting this more and more too. For example, the new proposal for a Belgian Corporate Governance Code 2020 (launched December 2017) cites how crucial Enterprise Risk Management is to organizations in order to obtain their long-term goals. Risk and performance are clearly linked here.
A study by KPMG involving over a hundred Belgian organizations shows that 71% of the respondents currently practice Enterprise Risk Management. 26% don't practice Enterprise Risk Management at all and 3% don't know.
Els Hostyn, KPMG partner in Belgium, concludes: “The fact that more and more organizations take Enterprise Risk Management seriously, integrating it in their daily operations, is encouraging. The introduction of a Chief Risk Officer and special risk committees by more and more companies has an important role to play here. But things are still clearly in need of work: much more use needs to be made of new technological developments in Enterprise Risk Management. Finally, a risk culture needs to be implemented throughout the entire organization.”
© 2021 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.