Deloitte makes case for CRO with new Risk Management survey

A new Risk Management survey by Deloitte released today has revealed that 73% of high-performing risk programs that have risk management represented in executive management meetings are more likely to exceed performance goals and achieve higher growth.

Deloitte says the results show investment in risk management as well as representation in the C-suite, such as a chief risk officer (CRO), translates into better financial performance and achievement of strategic priorities overall.

Chris Ruggeri, risk intelligence practice leader for Deloitte Risk and Financial Advisory, said: “Many organisations have, to varying degrees, upgraded and restructured their risk management functions, yet there is ample opportunity for continued improvement. We found that the lack of awareness of risks, particularly strategic risks, and leaders not using the tools available to manage them, can greatly undermine the achievement of strategic goals.”

The accountancy firm said results pointed to four central findings:

• Organisations that invest in, and integrate, risk management typically exceed performance goals and achieve higher growth.
• Risk management has become elevated—and more strategic—in many organisations.
• The case for appointing a CRO or equivalent who reports to the C-suite or board is strong.
• Organisations have clear opportunities to enhance risk management through technology.

Keri Calagna, a Deloitte Risk and Financial Advisory principal at Deloitte and Touche LLP, said: “New technologies such as advanced analytics, risk sensing, and automated controls are becoming more integral to providing a clearer view of risk enterprise-wide.

“As digital transformation takes hold of most organisations, the interconnectedness of an organisation’s various ecosystems and the sheer volume of data they create and process makes leveraging these tech-enabled solutions crucial to risk management of the future.”