The recently released Ernst & Young (E&Y) 2009 Business Risk Report is now available for viewing by members of the American National Standards Institute (ANSI) in the institute’s online library. The report, which compiles survey results from leading global sector analysts, concludes that companies worldwide acknowledge the importance of a comprehensive and effective risk management effort, particularly given the current economic climate.
The report reveals that concerns about credit crunch aftershocks and the global recession displaced the 2008 top-ranking concerns of regulation and compliance. According to the survey, the 2009 top 10 risk rankings are:
1. The credit crunch
2. Regulation and compliance
3. Deepening recession
4. Radical greening
5. Non-traditional entrants
6. Cost cutting
7. Managing talent
8. Executing alliances and transactions
9. Business model redundancy
10. Reputation risks
“It is critical for companies to take a comprehensive view of risk management starting at the board level,” said Steve Patton, a principal in the Americas Business Advisory Services Practice of E&Y and a leader in the firm’s work with the automotive sector. “In order to succeed, particularly in this volatile economy, organizations need to enhance their capability to proactively identify and manage strategic risks facing their business and industry.”
Mr. Patton presented the report’s preliminary findings during his keynote address at the October 23, 2008, meeting of the ANSI Joint Member Forum. [see related article]
The E&Y report was compiled from the results of interviews with more than one hundred analysts, representing eleven industrial sectors and more than twenty academic disciplines. Respondents were asked to identify and comment on business risks that leading global firms in their respective sectors are likely to face in 2009. The E&Y report summarizes these responses by presenting the risks rated as having the greatest impact across the largest number of sectors.
To view the report in ANSI’s online library, which is accessible to ANSI members only, click here.