A Management System based on structured risk management will bring added value Where are you on the Risk Management journey? (December 2016) COMPLIANCE WITH LEGISLATION, CODES, ETC PART OF COMPANY POLICY CUSTOMER REQUIREMENT START The top 3 drivers APPROACH TO RISK MANAGEMENT SURVEY SAMPLE Hazards Operational Financial Business Focus on the different risk categories ORGANIZATIONAL LEVELS INVOLVED IN 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% OPERATIONAL SUPPORT PROCESSES BUSINESS PROCESSES PRIMARY PROCESSES 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 RISK MANAGEMENT PROGRAMS BUT 40% of these only 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 approach will 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% Management Team 40% Middle Management 35% First Level Supervisors 30% Shopfloor use at least partially a standard or guideline for risk management A 10-STEP ROADMAP TO AN EFFECTIVE RISK MANAGEMENT APPROACH FINISH 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 apply in house approaches RISK MANAGEMENT AND MANAGEMENT SYSTEMS Strong growth in middle term investments SOCIAL TRENDS MARKET CHANGES COMPETITION DISRUPTIVE TECHNOLOGIES ONLY Strategic 42% DESERVE MORE ATTENTION