20 July, 2017 13:24
Canadian businesses are lagging behind in their risk management approach, reveals a report by PwC Canada. In addition to being more vulnerable to the disruptions that the businesses worldwide, less than 33 % of them claim to give one-off courses on the potential risks of new or existing when new risks appear, while this figure stands at 50 per cent elsewhere in the world.
In general, 66 % of companies surveyed said that they offer a mandatory training on ethics and compliance to all of their employees, compared to 75 % in the world.
«Only 40 % of canadian companies manage the operational risk effectively. By moving risk management to the first line, they would be able to strengthen their risk management culture «, stressed Kishan Dial, partner, services, Risk and compliance.
Manage the risks from the second line
However, respondents are aware that the management of risks on the first line » would mitigate their vulnerability to risks «. Despite this, several of them manage the risks from the second (risk management/compliance), and the third line (internal audit). The respondents justify this situation by a lack of qualified resources.
«Although canadian companies have made some progress for their vulnerability to hazards, much more remains to be done to catch up with their global competitors. By moving risk management to the first line, the management will have a better understanding of risk and a greater ability to manage with agility and proactive manner, » said Mr. Dial.
According to PwC, the main areas of risk and disruption to which canadian companies will be facing are technological progress, human capital and operations.