Risk ignorance greatest challenge

Seventy percent of UK risk managers think that making sure employees are risk aware is their biggest challenge, according to new research.

‘The risks companies are facing, such as increased company insolvencies, less access to credit and increased levels of fraud, need to be dealt with by employees throughout the organisation rather than just at senior management levels,’ said Aon, which conducted the survey.

Alex Hindson, head of enterprise risk management at Aon Global Risk Consulting said short term risk mitigation can be counter-productive. ‘It is essential to look at just where your business might need some extra support, whether it be finding alternate suppliers in case yours goes into liquidation, or re-thinking your insurance programme to suit your changing business model.’

‘Large businesses, especially, are notorious for creating ‘silos’, or individual parts of the business that do not communicate effectively with each other or share common business objectives. This is perhaps one of the most risk-laden business situations there is.’

‘As part of any ERM programme it is vital to break down these barriers so there is a transparent view of the whole business and risks can be assessed properly. Only then can you truly assess the risks facing a company and how you overcome them.’