Enterprise Risk Management Report 2018
29 August 2018
The results of BDO’s Enterprise Risk Appetite survey conducted in partnership with the Australian Institute of Company Directors indicates disruptive forces such as technology can’t be ignored and organisations need to have the capacity to take on some risk.
The report found that:
- Only 6% of organisations have formalised risk appetite statements documented in policies and procedures, supported by thresholds that establish parameters for specific risks. A further 74% have partial risk appetite approaches or positions
- Almost 20% of organisations have no formal risk appetite statement
- Culture and understanding are the two key risk appetite challenges, but organisations get a much better handle on their risk when a top-down approach is taken in which all the layers of an organisation are included.
The survey covered a range of senior organisational leaders, including directors and executives on their organisations’ risk appetite sophistication. Participants came from all sectors, including listed companies, not-for-profit, private businesses and government organisations.