There’s | 1 Contents Welcome 1 Looking at risk differently 2 Building a risk-aware organization 4 Step 1. Advance strategic thinking to improve value creation 7 Step 2. Optimize functions and process to effectively execute your risk strategy 11 Step 3. Embed solutions to proactively respond to risk and improve performance 15 A robust risk-aware organization 18 One business strategy: three different responses to risk 20 Today’s biggest business concerns need new responses to risk 22 Survey findings 24 Survey methodology 27 Welcome Operating a business requires taking risks. Organizations that identify and manage these risks well are positioned to grow and remain successful. In this year’s survey, we asked 1,196 participants, around the globe and across sectors, how well they are managing risk and what they need to do to better manage the risks that drive performance. Organizations today are challenged with managing a rapidly changing risk landscape. Reports in the media illustrate the increasing risks faced by organizations: market volatility, geopolitical crises, wide-spread economic changes, regulatory reforms and cyber threats. Long-term patterns such as the aging population, the rise of hyper connectivity and increasing geographic mobility are also having a direct effect on organizations worldwide. 1 While this creates many challenges for organizations, it also presents an opportunity to take advantage of the upside potential of risk. In this year’s survey, we found that organizations are making progress in improving the way they manage risk in response to a changing risk landscape. However, organizations also indicated that there is still further room for improvement and opportunities to be seized. However, this requires businesses to change the way they work and how they capitalize on it, so that they become a more risk-aware organization. This report captures EY’s perspectives on how businesses should do that. We hope that you enjoy reading our insights and we would like to extend a personal note of thanks to all of our survey participants. We appreciate the time they took to share their experiences. Every organization takes risks; let’s discuss how to best manage them together. 1. Glob al Risks Perception Survey 2014, World Economic Forum Paul van Kessel EY Global Risk Leader [email protected] Matt Polak EY Global Risk Transformation Leader [email protected] Michael O’Leary EY Global Internal Audit Leader [email protected] “ E very challenge and every opportunity an organization faces today demands change. And with change comes risk. We help our clients see all sides of risk: find where there’s opportunity in risk, protect against the risk you can see and identify risks you don’t know about yet.” Paul van Kessel, Global Risk Leader Welcome to There’s no reward without risk : our thought leadership report based on the findings from our global governance, risk and compliance survey 2015.