Organizations of all sizes are grappling with uncertainties and emerging risks in today's rapidly changing business landscape. The 14th annual edition of the State of Risk Oversight report, a collaborative effort between the AICPA and NCSU Poole College of Management, sheds light on evolving enterprise risk management (ERM) practices across industries.
This year's study, based on insights from 454 business leaders, delves into the drivers for enhanced risk management, the maturity levels of risk management practices, and the strategic significance of ERM. It highlights the increasing importance of leadership in identifying, assessing, and monitoring risks, as well as the role of board structures in governance.
Key findings from the 2023 enterprise risk management study
Enhanced risk management drivers: With the business environment becoming more complex, the demand for sophisticated risk management strategies is on the rise.
Strategic value of ERM and leadership insights: Effective ERM programs contribute significantly to strategic decision-making, underscoring the need for strong leadership in managing risks.
The growing impact of culture on risk management: The report also emphasizes the growing focus on organizational culture, sustainability, and diversity, equity, and inclusion (DEI) as critical components of risk management.
How to improve your organization’s ERM practices
To enhance your organization's approach to risk management, refer to appendix B of the report for a template assessing your culture and leadership support toward ERM. Compare your organization with industry peers and discover actionable insights to improve your risk management strategies.