A Management System basedon structured risk management will bring added value

Where are you on the Risk Management journey?(December 2016)

Where are you on the Risk Management journey?

COMPLIANCEWITH LEGISLATION,

CODES, ETC

PART OFCOMPANY

POLICY

CUSTOMERREQUIREMENT

START

The top 3 drivers

APPROACH TO RISK MANAGEMENT

SURVEY SAMPLE

64% 63%

Hazards

Operational

Financial

Business

Focus on the differentrisk categories

ORGANIZATIONAL LEVELS INVOLVEDIN RISK MANAGEMENT

Risk management top used methods/techniques

RISK MANAGEMENT RELEVANCE FOR COMPANIES’ OVERALL BUSINESS STRATEGY

ASSESSMENT AND CERTIFICATION

FUNCTIONS AND DISCIPLINES AFFECTED BY RISK MANAGEMENT

18%

45%

35%

70% 61% 60%

46%

OPERATIONALSUPPORT PROCESSES

BUSINESS PROCESSES

PRIMARYPROCESSES

Operations

Purchasing

Sales

Marketing

Product/Process Development

Compliance

Insurance

Finance & Accounting

Strategic Planning

Legal

Risk management application varies significantly among the different processes

GUIDANCE FOR RISKMANAGEMENT PROGRAMS

BUT 40% of theseonly have a limited scope coverage

2 IN 3 COMPANIES make use of a dedicated risk management function

METHODS AND TECHNIQUES

Risk management methods/techniques are known and used only by a minority

Awareness Unawareness

FMEA/FMECA

Cause & effect

Brainstorming

Risk registers

Pareto chart

Risk identification

Risk analysis

Risk evaluation

Risk treatment

Relevance today

Relevance in 3 years from now

36%

21%48%

52%

Risk management strategies and policies

Maturity in risk management approachwill significantly evolve

81%

64%

1 COMPANY IN 2 already has a risk

management strategy/policy

Study the standard (e.g. ISO 31000)

Obtain commitment, support & budget

Define the risk management policy, objectives, roles and responsibilities

Define and document the risk management structure and processes

Identify, analyze and evaluate the most common and relevant risks

Establish a risk treatment plan with mitigating actions and objectives

Consolidate all of the above (risk management policy, objectives, etc.) in your organization’s risk management system

Create awareness at all levels and train people

Plan and execute internal audits/assessments and identify possible improvements

Continual improvement of the risk management system and full integration in the overall Management System

Risk reporting

37% Board Room Members

46% ManagementTeam 40% Middle

Management

35% First LevelSupervisors 30% Shopfloor

use at least partially a standard or guideline for risk management

A 10-STEP ROADMAP TO AN EFFECTIVE RISK MANAGEMENT APPROACH

FINISH

71%

31%

59%

Facilities

ICT

HR Management

HSE & Security

Quality Assurance/Quality Control

23% 77%9% USAGE

36%

43% SET MEASURABLE GOALS

INVESTMENTS IN RISK MANAGEMENT

Maintain or increase investments 89%

Certification of a risk management program is valuable

YES

ADD VALUE

1 2

3 4

5 6

7 8

9 10

TODAY 3 YEARS FROM NOW

The survey involved 1,563 professionals worldwide in companies in the primary, secondary and tertiary sectors

Risk management application varies among different levels

Organisations mainly applyin house approaches

RISK MANAGEMENT AND MANAGEMENT SYSTEMS

Strong growth in middle term investments

SOCIALTRENDS

MARKETCHANGES COMPETITION DISRUPTIVE

TECHNOLOGIES

ONLY

Strategic 42% DESERVE MORE ATTENTION