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Few Companies Using Enterprise Risk Management, Says AICPA Finance Survey

The fraction of companies that utilize enterprise-wide risk management strateg

The fraction of companies that utilize enterprise-wide risk management strategies is small, according to a recent finance survey that was commissioned by the American Institute of Certified Public Accountants (AICPA) and conducted by the ERM Initiative at North Carolina State University.

A small number of companies have incorporated enterprise risk management into their business strategy, with 15 percent of CFOs and other senior executives participating in the survey stating that they either "mostly" or "extensively" think of their company's risk management policies as being a proprietary strategic tool that grants the firm a competitive advantage, according to the Journal of Accountancy.

Nearly-half, or 49 percent of organizations taking part in the poll said that when contemplating new strategies, they do not take existing risks into account, the media outlet reports. Slightly-more-than one-third, or 35 percent, have either "mostly" or "extensively" stated their organization's risk tolerance in their strategic planning.

Mark Beasley, CPA, Ph.D., who serves as professor of enterprise risk management and directs the ERM Initiative at the university, stated that risk management and strategy rarely coincide at a wide range of organizations, according to the news source. 

Learn about what CFOs are doing to lead risk management efforts at their companies at Proformative's CFO Dimensions Conference.