Risk management 'must be strengthened among UK firms'

Businesses in the UK are currently failing to allocate an appropriate amount of attention to risk management strategies, according to a Deloitte report.

Analysis conducted by the organisation has revealed that less than half of large UK corporate entities have a dedicated chief risk officer (CRO) or equivalent, despite the unstable nature of the current business environment.

Although many companies recognise the value of managing risk, a large proportion were found to be uncertain as to how this should be executed, with inconsistent views of CRO roles and strategies.

Hans-Kristian Bryn, risk partner at Deloitte, said progress has been made in risk management terms in recent years, but companies are too focused on downsides to consider the benefits of a proactive and positive strategy in this area.

"There is a great opportunity for companies to increase the value of risk management by putting it in a more strategic context and incorporating risk-return more explicitly into decision-making," he said.

Earlier this month, a report from AT Kearney suggested companies that establish sound risk management strategies with outsourcing partners and suppliers are more likely to perform well.

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