The Organizational Drag of Risk Management Must be Diminished

Strategic Risk Management
Knowledge Center

 

Next Topic

Strategic Risk Management > Best Practices > The Organizational Drag of Risk Management Must be Diminished

The Organizational Drag of Risk Management Must be Diminished
Jaap de Jonge, Management Consultant, Netherlands
Regulators and organizational leaders were largely , but reacted strongly after it occurred. This has led to a situation in which risk management’s operational drag in most large firms has now become too big and has to be reduced. A 2014 shows data taken from its members that only 6% of time spent by audit departments on risk types is spent on . While this category is responsible for 86% of the significant losses in market value over the last 10 years. And on the other hand, no less than 52% of time is spent on financial, legal and compliance issues, while such issues only account for 5% of all significant market value losses. The conclusion is that nowadays risk departments are looking for risks in all the wrong places. In reaction to market turmoil, companies have been increasing their and risk management budgets. But an excessive or even exclusive focus on risk prevention and formalized risk management processes has created an unintended consequence referred to as “Organizational (...) Read more? Sign up for free
 

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

    Log in

   

 
Risk Management Should Be Lean or Agile
Love Lonnroth, Management Consultant, Sweden, Member
(...)
 

 
The Customers' Trust of your Business
Stephanie Dolan, Entrepreneur, United States, Member
(...)
 

 
Risk Management not Only an Organizational Drag
Keatsen LIU, Professor, China, Member
(...)
 

 
Everybody Must Execute Risk Management
jorge anibal hoyos hoyos, Manager, Colombia, Member
(...)
 

 
The Organizational Burden of Risk Management
Dr Robin C Hesler, Canada, Member
(...)
 

 
Avoid Over-regulation of Risk Management
Juan Manuel Ugarte, Professor, Mexico, Member
(...)
 

 
Risk Management Not Only About ISO 31000
ELIZABETH DELGADILLO UBALDO, Professor, Mexico, Member
(...)
 

 
Everybody Must Be Educated on Risk Management
jorge anibal hoyos hoyos, Manager, Colombia, Member
(...)
 

 
Risk Management is Needed But Not Need not be Complicated
Barney Wade Howard, Manager, United States, Member
(...)
 

 
Proportionality of Risk Management
Juan Manuel Ugarte, Professor, Mexico, Member
(...)
 

 
Risk Management & Business Ethics
Briolett, Manager, Canada, Member
(...)
 

 
Best Practices for Dealing with Risk in Organizations
Kasper Hiddema, Student (University), Netherlands, Premium Member
(...)
 

 
History of Risk Management in Business Banks
Jaap de Jonge, Management Consultant, Netherlands
(...)
 

 
Involve Risk Champions in Strategy Meetings for Risk Implications
John Maddalena, CEO, South Africa, Member
(...)
 

         
Special Interest Group Leader

Interested? Sign up for free.


Strategic Risk Management
Summary
Forum
Best Practices


Strategic Risk Management
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.3 - Last updated: 19-1-2020. All names ™ of their owners.