Global growth in risk management

Despite the favourable world economic background, more businesses globally are addressing the many risks and uncertainties that are an inherent part of business life. And a recent critical issue stems from the technological innovations of the past few decades, with many businesses seeing a formal mechanism for dealing with security and privacy of electronic information as essential.

These are among the findings in the latest International Business Report from Grant Thornton which shows that the proportion of businesses globally with formal documented processes in place has risen since 2004 in all business risk areas except for major regulatory change. Over three quarters of businesses worldwide have a formal documented mechanism to deal with privacy of information, security of electronic information and business strategy/plan – the top three risk areas with mechanisms in place.

The report reveals significant regional variations in attitudes. The countries where businesses are most likely to have a senior manager responsible for overseeing risk are Philippines, Australia, Hong Kong, Sweden and US. Those least likely are Russia, Singapore, Armenia, Poland, Brazil and Botswana.