Boards of companies struggle to understand and make time to manage business risk, despite directors spending more time on company strategy than they were doing in 2011, says a recent McKinsey study. This was reported by Hindu Business Line. Risk management remains a weak spot perhaps because boards (and companies) are increasingly complacent about risks.
Twenty nine per cent of the respondents say their boards have limited or no understanding of the risks their companies face and spend just 12 per cent of their time on risk management, according to the ‘McKinsey global survey on governance’. Only 15 per cent of the directors say their boards have a complete understanding of the risks that company faces.
Read the full report here