Risk management crucial for competition

A new report published by Aberdeen Group reveals that risk management strategies boost competitive differentiation, cost reduction and growth, reports Cision Wire.

The report is called Managing Enterprise Risks: An Executive's Guide to Reducing Corporate Liabilities and Costs.

Aberdeen Research found top performing companies are twice as likely as their competitors to have a complete audit trail of records to support analysis for reporting purposes.

These companies are said to have experienced a 23% reduction in risk value - the monetary equivalent of the combined risks in the past two years.

They also achieved 22% growth in new market revenue in the past 12 months.

MarketWire reveals that William Jan, Aberdeen senior research analyst, for financial risk management, says: “It is clear that companies with processes and tools that enable clear visibility into risk entities, and means to react quickly to mitigate them in a dynamic environment, are going to be the ones that hold the key to a sustainable business.”

The firm says top performing companies are more likely to have adopted cross-functional collaboration, states Insurance Networking News.

In addition, these companies are more likely to have established roles and responsibilities within departments to execute risk initiatives, compared to lower performing counterparts.