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       Growth in risk management was fast but may have cooled off: In 2007, the Aon survey said 50 percent reported having a formal risk management function and 88 percent said the board was engaged in risk issues. The growth was apparently fast, for a while. The Aon 2017 survey says that 66 percent now have a formal risk function—down slightly from 2015. These numbers don't quite align with the findings of the HDR/KPMG survey, which found that of those who currently have a risk management function, 65 percent say they implemented it since 2007. (That difference could be a difference in the respondent population.) Furthermore, growth in the number of staff in those departments has leveled off according to the Aon survey.

       There is support for risk management—mostly: The 2017 EIU report states that lack of support from senior management was a concern of only 21 percent in the previous year and only 15 percent expect it to be a concern in the next year. However, the HDR/KPMG survey finds that a higher proportion (31 percent) believe there is “no recognition by top management in the importance of risk assessment.”

       Influence of risk management is not as high as it could be: Regarding influence, the HDR/KPMG survey finds that 67 percent say risk assessment is used to provide “some guidance” or “significant guidance” in “major decisions” whereas the 2017 EIU finds that only 47 percent say the risk function plays a role in strategic decisions.

       Respondents would mostly say their methods are “formal:” The 2017 Aon study found that 60 percent state they have adopted formal or partially formal approaches to risk management. The share that say they have a formalized risk management approach goes up with the size of the firm—96 percent of firms with revenue over $10 billion say they use a formalized approach. About 70 percent overall would claim to have a formal or partially formal approach.

       Formal mostly means “qualitative procedure” not quantitative: The HDR/KPMG survey found that what these $10 billion firms mean by formal is mostly (74 percent) a qualitative ranking or scoring method, perhaps using a form of the qualitative risk matrix. This is about the same for companies under that revenue threshold (78 percent). Only 16 percent of firms with revenue over $10 billion (and 20 percent of firms of all sizes) say they use quantitative methods—that is, they use explicit probabilities derived from mathematical and empirical methods using tools such as simulations and tools familiar to actuaries, statisticians, or quantitative risk analysts. Of those who use quantitative methods, the most common is Monte Carlo simulations (85 percent) followed by statistical analysis of historical data (77 percent). Less common are methods such as Bayesian statistics (56 percent) or utility theory (17 percent).

       There are obstacles to the adoption of quantitative methods, but adoption is feasible: In the 2007 Protiviti survey, 57 percent said they quantify risks “to the fullest extent possible,” up from 41 percent in 2006. Because, as we noted, only 20 percent of all firms use some form of actual probabilistic methods, it would seem that most respondents in the Protiviti survey would not consider these methods possible. In fact, our survey found that 42 percent said an obstacle to the adoption of quantitative methods was “skepticism about the practicality and effectiveness.” Yet our survey showed that those who use quantitative methods such as simulations and statistical methods come from a variety of industries and company sizes. Even though quantitative methods are common in some industries (finance, insurance, etc.), the users outside of those industries are arguably as diverse as the users of qualitative methods. Apparently, there will be active users of these methods in the same industries and contexts where there are also skeptics.