Cos to increase investment in risk management: survey

Mumbai: Investment in risk management will continue to rise with 66 per cent of companies planning to increase their investment over the next three years.

"A number of companies plan to invest further in a dedicated risk management function," an Enterprise Risk Management (ERM) handbook, co-developed by Bombay Chamber of Commerce and Industry and Ernst and Young, said.

The data is based on a survey of 441 corporate leaders, including CEOs, CFOs and Chief Risk Officers. The survey was conducted by global consultancy firm Ernst and Young.

Two-thirds of respondents to the survey perceived a rise in risk levels over the last 2-3 years. The findings also indicate that companies have a lower tolerance for risk now than in the past.

The challenge is to ensure the dedicated corporate teams promote excellent standards, facilitate processes and bring stability to the whole risk framework, the survey said.

The complex and dynamic business environment has exposed the industry to increasingly complicated challenges.

Risk management challenges over the next 3-5 years include developing a more integrated and systematic approach, clarifying ownership of risk and embedding a risk culture throughout the organisation.