UK companies are failing to press home their competitive advantage in the application of strategic risk management, according to a new research report from Marsh.
The majority of the UK senior executives surveyed admit that they do not have procedures in place to properly manage operational and strategic risks.
The report, Survey of Risk 2004, shows that the risks for which UK companies are least prepared are:
- increased competition
- adverse changes in customer demand
- losing key staff to competitors.
While 71% of UK companies claimed increased competition was a significant risk to their business, only 41% said they had a robust mitigation plan in place. In Europe, where increased competition is also seen as the most significant risk, 51% of companies are taking actions to address it.
