Discipline Structure and Effectiveness: Risk Management

By a small margin, more organizations use centralized risk management structures than hybrid. Centralized risk management structures are also perceived to be highly effective by organizations more than hybrid or decentralized models. Nearly a quarter of organizations continue to use decentralized risk management models, however, and 67% of organizations with risk management disciplines plan not to change in the near future.

Risk management activities require oversight and coordination, including identification and assessment of high-level risks to determine which to mitigate at an enterprise level. Organizations currently using decentralized models would do well to consider centralizing.