Risk complexity rises as companies struggle to strengthen oversight, report finds

Companies face a widening gap between increasingly complex risks and their ability to manage them effectively, according to the AICPA’s latest State of Risk Oversight report.

Based on a survey of 331 CROs, CFOs and other senior executives, 69% said the volume and complexity of risks had “mostly” or “extensively” increased over the past five years, up from 61% a year earlier.

However, only 30% described their risk-management oversight as “mature” or “robust,” down from 32%, while 40% characterized it as “evolving.”

Only 11% said risk management provides a significant competitive advantage, with risk insights still inconsistently incorporated into strategic planning, capital allocation and board discussions. Read more.