Enterprise risk management prevalent in South Africa: Study
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A majority of risk professionals in South Africa reported that their enterprise risk management programs are fully or partially integrated into their businesses’ operations.
The 2019 Enterprise Risk Management Report: South Africa showed that 88% of the 97 risk professionals across 16 industries responding to the survey conducted from Jan. 1 to May 15 reported either having fully or partially integrated ERM programs in operation, with 45% reporting having a fully integrated program.
This is a significant increase when compared with 73% reporting a partial or full level of integration in the 2017 ERM Benchmark Survey, and only 24% having a fully integrated program, according to the report released Wednesday.
In addition, 53% of survey respondents said ERM is being used to inform and influence strategy, but 24% said their organizations do not have a risk appetite or risk tolerance statement, according to the report.
Meanwhile, 81% of risk executives report to their board/committee on a quarterly basis, and 70% said their ERM reports/outputs are reviewed at the board level by the audit committee, according to the report.
For 31% of respondents, ERM implementation was ordered by the board, while 45% reported that ERM program implementation was motivated by regulatory requirements, according to the report.
The report was a joint effort between the Risk & Insurance Management Society Inc. and The Institute of Risk Management South Africa.
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