Leadership Key in Risk Efforts

Companies with chief risk officers are more likely to have plans in place for various risks.

Despite all the talk about risk management, a recent survey suggests that few companies are satisfied with their efforts, with just one out of 10 executives describing their company’s risk management programs as “highly effective.” Other results of the survey of more than 1,400 global executives, conducted by Harvard Business Review Analytical Services for Zurich Financial Services, indicate that one key to successful risk management is having a single executive, like a chief risk officer, in charge.

“Risk management needs to have an effective owner,” says Mike Kerner, CEO of Zurich Global Corporate North America. “There need to be really clear roles and responsibilities. If multiple people are responsible for something, nobody is responsible.”

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