According to the survey conducted by Collaboration,
Management and Control Solutions (CMCS), only 59 percent of Middle Eastern
firms have a risk management policy in place, as opposed to 73.5 percent in the
UK.
Of those Middle Eastern organizations that do have policies,
59 percent fully implement the policy and adhere to pre-defined procedures for
risk management, compared to 73.4 percent in the UK, it added.
“Although our survey indicates an upward trend in risk
management adoption in the Middle East, it also shows more room for improvement
in terms of policies and practices,” said Bassam Samman, CEO and Founder, CMCS.
In the Middle East, 45 percent of firms with formal risk
management policies have a dedicated risk management officer; 49 percent do not
start projects without a complete risk register; 61 percent assess each risk
against the probability of occurrence and impact; and 69 percent of management
identify risk response actions for high-exposure risks, the survey revealed.
“Project-based companies are especially encouraged to
enforce better risk management frameworks in light of the volatility of their
markets. While projects are inherently risky, a better understanding of
potential hazards and how to prevent or deal with them puts a company in a more
advantageous position, which makes sound business sense,” he said.
Survey results also showed that among regional firms with
risk management provisions, 53 percent develop a complete risk management plan
for each project; 53 percent formally implement their plans and conduct
periodic risk assessment reviews; and 46 percent update their risk database
after project completion.
Risk management studies are of significant value to the
region, where project and investment failures commonly trace back to poor
strategies, the report said.
Enterprises in developing countries are more likely than
those in “developed” economies to reap risk management benefits by increasing
competitive advantage (81 percent to 44 percent) and encouraging innovation and
creativity (73 percent to 43 percent), according to another report.
Developing countries are also significantly more likely to
be investing heavily in risk management strategies and systems than their
counterparts in the US and Europe (54 percent to 36 percent), revealed a study
by Datamonitor.
Datamonitor was commissioned by BT to undertake the study of
2,000 senior executives in the US, UK, France, Germany, Spain, Sweden, Brazil,
China, India and South Africa.
“In the Middle East, there is an increase in the amount of
risk management initiatives. Companies are finding it difficult to hire
adequate resources to perform risk management. Therefore, they are looking at
organizations to provide this service,” said Tareque Choudhury, Head of BT’s
Security Practice for Middle East and Africa.
