Why the disconnect? Risks are Everywhere; Risk Management is Not

Podcast Discussion of the State of Risk Oversight:

The 2023 State of Risk Oversight report that focuses on enterprise risk management (ERM) and offers tools for risk practitioners is the focus of this episode of a Journal of Accountancy (JofA) podcast.

Listen to the podcast below or read the edited transcript:

The 14th edition of The State of Risk Oversight, a report produced jointly by the AICPA & CIMA, together as the Association of International Certified Professional Accountants, and the ERM Initiative at North Carolina State University, shows that the volume and complexity of risks continues to be prominent on the radar of leaders at U.S. organizations of all types and sizes. However, complete and formal ERM processes are just as common now as five years ago, after the survey showed nearly a decade of increased interest in ERM.

Mark Beasley, CPA, Ph.D., a professor at N.C. State and director of the school’s ERM Initiative, analyzes the disconnect, explains why a post-pandemic sigh of relief is not a good sign for risk managers, and shares some of the questions that organizations can ask themselves to improve their ERM practices.

What you’ll learn from this episode:

• An overview of the annual survey, and why it appears that interest in establishing complete and formal risk management appears to have leveled off.
• Beasley says there’s a “false sense of security” related to risk management.
• Why defining an organization’s crown jewels is a key first step in risk management.
• The obstacles that inhibit some organizations’ risk management efforts.  
• Questions related to risk management that can be part of your next company strategy meeting.