Company-specific risks are under better control, CFOs and CHROs assert. Seventy-five percent express confidence in their own operations compared to 42% for suppliers and 55% for distributors. Furthermore, 68% of middle market leaders say their company has a business continuity plan, and all but 5% of those say the plan has been updated within the past year. Certain human capital risks appear to be tightly managed, too: 75% express high confidence in their enterprises’ ability to manage the human capital risks of compliance, discrimination, and the like--the same degree of confidence as they display about their operations.
2.70%
On a scale of 1 to 5, with 5 being the most confident, how confident are you that your current workforce policies, procedures, and culture are effective in limiting workplace harassment, discrimination bias and potential litigation (such as age, race, gender, ethnicity, sexual orientation, etc.)?
22.70%
21.08%
53.51%
1 Lowest Confidence
2 Low Confidence
3 Moderate Confidence
1 2 3 4 5 4 High Confidence
5 Highest Confidence
There is, however, a larger set of human-capital risks, having to do with finding and retaining talent at an affordable price. Those (as we saw above) are less under control. Additionally, many middle market enterprises cite diversity, equity, and inclusion as a significant management challenge and note that the failure to address DEI is not just an exposure to discrimination claims, but puts their talent pool, customer base, and, in some cases, investor base at risk. Dealing with these varied but interconnected risks requires more than a shotgun set of efforts to mitigate or insure against hazard. In the past, a comprehensive enterprise risk strategy was the province only of large global enterprises, but nearly three out of five middle market leaders now have a comprehensive enterprise risk strategy, according to the survey.
Do you have a comprehensive risk management strategy?
41.62%
58.38%
Yes No
24 I ACHIEVENEXT SENTIMENT STUDY
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