Risk Management Remains an Issue for Businesses: PwC
Improving competencies is an important step in closing capability gaps, with respondents making or planning to make changes in the next 18 months.Internal business changes intended to address dynamic market shifts have created a more complex risk landscape for businesses around the globe, according to a PricewaterhouseCooper (PwC) survey. The report found that 84 percent of organizations surveyed said they plan to create a risk-aware culture, making risk management a priority for people at all levels of the organization. Results indicated improving competencies is an important step in closing capability gaps, with survey respondents making or planning to make broader changes in the next 18 months. However, concerns remain. For example, the survey suggested collaboration among the three lines of defense (business units, risk and compliance and internal audit) in identifying, monitoring and effectively managing critical risks is still not deep enough, with 60 percent of survey respondents concerned that a lack of collaboration could be exposing their company to capability gaps.
"Executives are working to close the capability gaps they’ve identified, and agree that close collaboration between risk-related functions is vital to ensure a shared view of business risks across the enterprise," Brian Schwartz, PwC’s U.S. risk assurance governance risk and compliance leader, said in a statement. "However, they may be missing a key issue - a sharp disconnect between top management and the risk and compliance functions. Not only are they disagreeing on the type and degree of key risks facing a company, but also about the organization’s capabilities."