{ } BACK TO CONTENTS Risk – and reward


And will this be all graft and no reward? The good news is no, I don’t think it will be. There is in fact a competitive advantage to be gained from mature risk management. For example, thinking of the horsemeat scandal, some players in the market had already thought ahead and identifi ed alternative meat suppliers before their competitors. Risk management gave them a real advantage.


While no one is pretending that risk management is easy, I believe it is defi nitely a battle worth fi ghting for all consumer goods organisations.


The full research can be accessed here:


Expectations of Risk Management Outpacing Capabilities – It’s Time For Action


Top Eight Risk Management Imperatives for the C-suite in 2013


In co-operation with the EIU KPMG INTERNATIONAL


‘Expectations of Risk Management Outpacing Capabilities – It’s Time For Action’


FOCUS 27 To what do you attribute your organization’s success in effectively communicating risk issues to the Board level? 36%


Our organization does not promote risk management as a value creating tool (e.g., views it as a cost centre)


35% Weak


risk reporting processes and documentation


33%


The ineffective integration of risk management


focus throughout the organization


33%


A compensation structure


throughout the organization that does not reward focus on risk management


24%


A poor line of communication between the risk management and senior management


Note: Percentages may not add up to 100% as respondents were instructed to select the top three © 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved. 23% A weak


understanding on the part of the Board of risk issues


20%


An ineffective committee structure


36% of organisations do no


promote risk management as a value creating tool


MANAGEMENT RISK


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