A survey of businesses from a variety of sectors found that while most respondents had risk monitoring in place, 86 percent had experienced some problems in the last five years.
The report posted on Lexology said that the statistic highlighted the disconnect between identifying risks and, in a timely way, adjusting mitigation strategies to effectively counter them.
A further 60 percent of all respondents, 13.3 percent of whom were from the manufacturing industry, said the biggest challenge for their enterprise was to anticipate and adapt quickly to change. Another conclusion of the study was that company resilience should be “driven from the executive and embedded across the organisation”.
Crisis management or continuity plans were found to be exercised by 78 percent of those surveyed, with almost 20 percent having quarterly exercises. Yet the “frequency and impact of disruptive events” shows that “lessons are not being identified and learnt through training”, or that companies are focusing on preventing low-risk distruption rather than high-impact, more highly probable incidents.
Political risks to their business was a concern for 62 percent of the respondents, with political and security instability voted “considerably higher” than macroeconomic volatility. Also, 35 percent said they had never reviewed business continuity plans of key service providers.