MEDIA RELEASE PR40756
Korn/Ferry Survey Notes That Risk Management Is an Increasing Priority for Corporations
NEW YORK, Aug. 11 /PRNewswire-AsiaNet/ --
A Korn/Ferry Executive Quiz survey released today reveals that corporate
leadership attention to risk management has significantly increased as a
result of the global downturn and the many high profile risk management
failures in the financial services industry. From a July 2010 survey of
senior executives and board members from across the globe, it was clear that
companies are actively identifying and addressing their own risk management
issues more than ever before.
According to the Korn/Ferry executive survey, 59 percent of executives
believe that the recent scrutiny on corporate reputation risk has had a
positive affect on their Board's view of reputation management and crisis
preparedness, with only 28 percent saying that the increased attention on
risk management has had no affect.
"The fragile global economy and the recent high-profile collapses within
the financial sector have taken their toll on organizations worldwide. As a
result, it's clear that a by-product of the new environment is an increased
focus and awareness by executives of the importance of risk management
planning. The Korn/Ferry survey shows that the majority of companies have
already taken practical steps to enhance their risk management practices and
awareness," said Steve Mader, vice chairman and managing director of
Korn/Ferry Board Services.
More than half of the executives (58 percent) believe that their company
has improved the quality and timeliness of internal oversight and reporting
to the Board to better assist in risk management and planning.
Fifty-seven percent of senior executives surveyed said that directors and
executives are spending more time dealing with risk management. Twenty-six
percent said there had been no change at all, while 14 percent revealed that
their company is actually spending less time on risk management. Results also
showed that the majority of executives, 60 percent of those surveyed, do not
believe that increased government oversight had been a driver for improving
risk management at their organizations.
The survey indicates that risk analysis and ongoing management are
becoming increasingly critical areas of focus and importance to organizations
and C-suite executives across the world. While 20 percent of organizations
have a Chief Risk Officer from among the executives surveyed, many noted that
the direct responsibility for risk management at their organizations starts
at the top - 43 percent identified the Chief Executive Officer as directly
responsible, with 19 percent pointing to the Chief Operating Officer.
1. Are senior executives and directors in your company spending more time
on risk management?*
Yes, they are spending more
time (117) 57%
--------------------------- ---
No, they are spending less
time (29) 14%
-------------------------- ---
There has been no change (54) 26%
----------------------------- ---
Unsure (5) 2%
---------- ---
*Due to rounding, responses do not equal 100 percent.
2. Has your company improved the quality and timeliness of information
shared with the Board to assist with decision making and better risk
management?
Yes, it has improved (154) 58%
-------------------------- ---
No, it has worsened (32) 12%
------------------------ ---
There has been no change (70) 27%
----------------------------- ---
Unsure (8) 3%
---------- ---
3. Who has direct responsibility for risk management at your company?*
Chief Executive Officer (227) 43%
----------------------------- ---
Chief Operating Officer (99) 19%
---------------------------- ---
Chief Risk Officer (108) 20%
------------------------ ---
Lead Director (41) 8%
------------------ ---
Other (58) 11%
---------- ---
*Due to rounding, responses do not equal 100 percent.
4. Will expanding and increasing aggressive federal securities oversight
affect the composition of your board?
Yes (270) 40%
--------- ---
No (404) 60%
-------- ---
5. Will the recent, heightened attention on corporate reputation risk
affect your board's view of reputation risk management and crisis
preparedness?
Yes (259) 59%
--------- ---
No (125) 28%
-------- ---
Unsure (57) 13%
----------- ---
Methodology
The Korn/Ferry Institute Executive Quiz survey is based on a global
survey of executives registered within the firm's online Executive Center,
ekornferry.com. Respondents from more than 65 countries, representing a wide
spectrum of industries and functional areas, participated in the most recent
Executive Survey in July 2010.
About The Korn/Ferry Institute
The Korn/Ferry Institute generates forward-thinking research and
viewpoints that illuminate how talent advances business strategy. Since its
founding in 2008, the institute has published scores of articles, studies and
books that explore global best practices in organizational leadership and
human capital development. For more information, visit
About Korn/Ferry International
Korn/Ferry International, with a presence throughout the Americas, Asia
Pacific, Europe, the Middle East and Africa, is a premier global provider of
talent management solutions. Based in Los Angeles, the firm delivers an array
of solutions that help clients to attract, develop, retain and sustain their
leadership, intellectual property and research.
SOURCE: Korn/Ferry International
CONTACT: Lindsey Koh
+1-310-556-8532
Lindsey.koh@kornferry.com
or Asia Pacific
Carol Lo
+65.6231.6219
carol.lo@kornferry.com
or EMEA
Juerg-Herbert Baertschi
+44 20 7312 3178
juerg-herbert.baertschi@kornferry.com
all of Korn/Ferry International
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