Corporate executives are increasingly focusing attention on their organizations’ risk management functions, reaching out to risk managers for guidance on everything from strategic direction to day-to-day business decisions, as risk has become a crucial part of corporate planning in recent years.
Part of this shift toward more responsibility is due to the tools that risk management professionals can now offer to the business at large, including advanced analytics and data-driven skills, which are being used to guide a wide range of business decisions. It’s a distinct contrast from the 2004 Excellence in Risk Management report, which noted that the field was, at the time, moving away from simply purchasing insurance to instead controlling losses and quantifying the costs of risks. Today’s big data tools and analytics have accelerated this shift.
“C-suites and boards are asking risk professionals for much more than what insurance coverage is in place,” said Elowe. “They want to know what unexpected risks the organization may face and where to invest capital most effectively. If used properly, data and analytics can help organizations make better business decisions while at the same time increase the profile of risk management within the organization.”
via Marsh: Risk Management Now a C-Suite Priority
