A large percentage of companies don’t risk assess their PURPOSE/strategic plans/objectives in any serious way. What will it take to convince CEOs/Boards to integrate ERM and strategic planning?
The evidence is clear - few companies apply formal risk assessment during their strategic planning process. NCS/AICPA annual “Risk Oversight” survey continues to report low integration of strategic planning and ERM. Two McKinsey partners, authors of “STRATEGIC PLANNING BEYOND THE HOCKEY STICK”, report few companies risk assess strategic plans being presented to Boards for approval. Why is this?
I think the biggest single reason is simple – a lot of CEOs still don’t think they need formal risk/certainty assessment during the strategic planning process. Most boards don't expect or demand it......"Tim Leech"