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Belgian organizations increasingly adopt Enterprise Risk Management

Belgian organizations increasingly adopt ERM

KPMG: Over 7 out of every 10 organizations have adopted Enterprise Risk Management.


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Belgian organizations increasingly adopt 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.” 

Belgian Corporate Governance Code 2020

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.

Other highlights of the KPMG study:

  • 34% have appointed a special committee tasked with the discussion of risky situations. Additionally, 48% of the companies have appointed a Chief Risk Officer to lead the Enterprise Risk Management program or process.
  • Both the use of data and technology in Enterprise Risk Management (employed by only 27%) and establishing a risk conscious culture (rolled out by only 46%) within the organization are underdeveloped.
  • The top three priorities for the coming years from a risk perspective are: promoting a risk culture, anticipating new risks and handling increasing regulatory requirements.
  • More than 50% of the respondents suggest that an Enterprise Risk Management program would enable them to develop risk-based internal audits, improve the monitoring role of the executive board and promote good governance.
  • The most common obstacles and challenges in implementing Enterprise Risk Management are a lack of resources (35%) and the fact that organizations prioritize other matters over Enterprise Risk Management (33%).


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.” 

This article is part of the Risk+ Newsletter June 2018

© 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.

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