A new Protiviti survey finds there is still "substantial room for improvement"

Large US companies are getting better at managing risks, according to a risk study released by Protiviti on 7 August.

Large US companies have improved their ability to identify and manage potentially critical business risks, however, there is still substantial room for improvement, the report shows.

While 53% of companies surveyed saw themselves as “very effective” at managing risk, nearly half of executives rated their organisations less than “very effective” at identifying and managing significant risks, leaving them vulnerable to unanticipated losses, reduced productivity and business disruptions.

“With all the attention today on GRC [governance, risk management and compliance], the results of the Risk Barometer can provide companies with insight about how their risk capabilities and appetites stand compared to the Fortune 1000 and 2000 companies in Protiviti’s study,” said Everett Gibbs, managing director and chairman of Protiviti’s operating committee.

“There has been a 15% increase in the percentage of companies managing risk very effectively since our 2006 US Risk Barometer, yet a high percentage of companies have significant room for improvement to protect and enhance enterprise value,” added Gibbs.