Researchers at Aon and The Wharton School of the University of Pennsylvania have released the fourth edition of the Aon Risk Maturity Index Insight Report. The findings of the report evidence a direct relationship between strong risk management practices and superior operating performance for organisations.
The 2015 Report analyses the inverse relationship between a higher Risk Maturity Rating and lower stock price volatility as well as a direct relationship between a higher Risk Maturity Rating and superior operational financial performance. Additionally, the report’s findings reinforced the relationship between a higher Risk Maturity Rating and the relative resilience of an organisation’s stock price in volatile equity, currency, and commodity market scenarios.
The specific strategies organisations should implement to effectively understand and manage risk are outlined in several new key findings, including:
The report also finds that organisations that successfully utilise risk quantification techniques experience greater transparency into the organisation’s specific risk exposure and risk appetite – ultimately boosting the company’s operational performance.