Risk intelligence issues and challenges for global energy and resources industryDOWNLOAD
4 August 2014: Energy and resources companies around the world, and including in Australia, are still challenged when it comes to advancing enterprise risk management as a continuous process that aligns business strategies, risks and operations.
Deloitte’s global Enterprise Risk Management (ERM) Benchmark Report has assessed approaches to risk management in the industry. The survey of over 100 energy and resources companies focused on the overall maturity level of energy and resources companies, challenges around ERM and critical issues facing the industry.
Key report findings include:
Richard Jamieson, Deloitte Australia’s energy and resources risk leader Asia-Pacific said: ‘Substantial efforts have been directed toward developing enhanced approaches to risk management in the energy and resources industry, particularly in the past decade.
“ERM has become common practice, and more than half of the survey respondents reported having a fully operational ERM program.
“That means that nearly half do not, and that is a concern. The report shows that companies are becoming more aware of the value of ERM, both top-down and bottom-up, however, there is still a long way to go before this capability is ingrained across the industry, including in Australia.
“Leaders in this area use ERM to create a line of sight between business strategies and corporate assets, helping optimise investment decisions, accelerate growth and minimise cost.
“Rewarded risks are slowly getting more attention. However, recent crises across the industry have once again put asset protection and regulatory compliance high on the agenda.
“All energy and resources operators need to ensure they transform their approach to ERM from a ‘right thing to do’ into a critical business process that continuously measures risk exposure and helps in the allocation of corporate resources necessary to achieve business objectives.”
Those getting ERM right will share a range of characteristics, including:
Click here to access the full report.
NB: See our media releases and research at www.deloitte.com.au
Follow us – @DeloitteNewsAU