FM Global and CFO Research Services have partnered together and recently issued a study titled “Finance’s Role in Operational Risk Management: CFO Research on Building a Resilient Company.”
The study was based on polling 100 senior financial executives from US Fortune 1000 companies. The CFOs’ top operational concerns included equipment failure, data breaches and/or cyber-attacks and natural disasters.
66% of the CFOs said equipment failures have affected their companies within the last five years. Almost 60% of the organizations who responded have suffered a data breach or cyber- attacks, and 52% have been affected by a natural disaster.
Despite these statistics, 54% of the organizations have not developed or tested a loss or recovery plan.
The conclusion of the study is that organizations must improve their resilience for operational risks in the future, which was affirmed by 86% of the respondents.
CFOs and financial and operational executives: the report is worth a look as risk management plans are being developed for 2017.