{"id":3058,"date":"2025-09-09T06:50:08","date_gmt":"2025-09-08T22:50:08","guid":{"rendered":"https:\/\/moresourcing.com\/are-leaders-flying-blind-on-risk\/"},"modified":"2025-09-09T06:50:08","modified_gmt":"2025-09-08T22:50:08","slug":"are-leaders-flying-blind-on-risk","status":"publish","type":"post","link":"https:\/\/moresourcing.com\/en\/are-leaders-flying-blind-on-risk\/","title":{"rendered":"Are Leaders Flying Blind on Risk?"},"content":{"rendered":"\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1290\" height=\"860\" data-id=\"3056\" src=\"https:\/\/moresourcing.com\/wp-content\/uploads\/2025\/09\/Are-Leaders-Flying-Blind-on-Risk.jpg\" alt=\"\" class=\"wp-image-3056\"\/><\/figure>\n\t\t\t\t\t\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1200\" height=\"540\" data-id=\"3057\" src=\"https:\/\/moresourcing.com\/wp-content\/uploads\/2025\/09\/Are-Leaders-Flying-Blind-on-Risk.png\" alt=\"\" class=\"wp-image-3057\"\/><\/figure>\n\t\t\t\t\t<\/figure>\n<br><div id=\"article-content\">\n            <header class=\"article-header\">\n    <a href=\"https:\/\/sloanreview.mit.edu\/series\/radar\/\" class=\"article-header__content-meta\"><span>Radar<\/span><\/a>     \n    <h2 class=\"article-header__deck\">Many companies fail to connect an enterprisewide view of risk to strategic planning and decision-making.<\/h2>\n\n            <div class=\"article-header__info\">\n            <a href=\"#article-authors\" class=\"article-header__byline\">Elizabeth Heichler<\/a>\n            <time class=\"article-header__date pub-date-dimension\" datetime=\"2025-09-08T07:00:43-04:00\" pubdate=\"\">\n                <abbr class=\"published updated\" title=\"2025-09-08T07:00:43-04:00\">September 08, 2025<\/abbr>\n            <\/time>\n            <span class=\"article-header__reading-time\">Reading Time: 2 min\u00a0<\/span>\n        <\/div>\n    <\/header>\n\n<div class=\"standard-content article-content\">\n\n    <div class=\"article-left-col\">\n        <section class=\"article-topics\">\n    <h4 class=\"article-topics__title\">Topics<\/h4>\n    \n<\/section>\n            <section class=\"article-section\">\n\n        <h4 class=\"article-section__title\">Radar<\/h4>\n        <p>\n            Brief insights on emerging trends in management from the opening pages of <cite>MIT Sloan Management Review<\/cite>\u2019s quarterly print magazine.        <\/p>\n        \n        \n        <a href=\"https:\/\/sloanreview.mit.edu\/series\/radar\/\" class=\"article-section__link\">\n              \n           More in this series\n                      <\/a>\n\n    <\/section>\n    <\/div>\n\n\n    \n\n\n\n\n\n    \n\n    \n        \n\n    <aside class=\"article-ad ad-300  ad-300x250 ad-desktop\">\n                \n                <\/aside><aside class=\"article-ad ad-300  ad-300x250 ad-mobile\">\n                \n                <\/aside>\n<figure class=\"article-inline\">\n<img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" width=\"1290\" height=\"860\" class=\"wp-image-122577\" srcset=\"https:\/\/moresourcing.com\/wp-content\/uploads\/2025\/09\/Are-Leaders-Flying-Blind-on-Risk.jpg 1290w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-300x200.jpg 300w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-150x100.jpg 150w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-768x512.jpg 768w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-764x509.jpg 764w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-382x255.jpg 382w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-870x580.jpg 870w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-435x290.jpg 435w\" data-lazy-sizes=\"(max-width: 1290px) 100vw, 1290px\" src=\"https:\/\/moresourcing.com\/wp-content\/uploads\/2025\/09\/Are-Leaders-Flying-Blind-on-Risk.jpg\"\/><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" width=\"1290\" height=\"860\" src=\"https:\/\/moresourcing.com\/wp-content\/uploads\/2025\/09\/Are-Leaders-Flying-Blind-on-Risk.jpg\" class=\"wp-image-122577\" srcset=\"https:\/\/moresourcing.com\/wp-content\/uploads\/2025\/09\/Are-Leaders-Flying-Blind-on-Risk.jpg 1290w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-300x200.jpg 300w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-150x100.jpg 150w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-768x512.jpg 768w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-764x509.jpg 764w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-382x255.jpg 382w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-870x580.jpg 870w, https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/2025FALL_Radar_RealityCheck-1290x860-1-435x290.jpg 435w\" sizes=\"(max-width: 1290px) 100vw, 1290px\"\/><figcaption>\n<p class=\"attribution\">Primeimages\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<div class=\"article-summary\"><strong class=\"article-summary__strong\">Summary: <\/strong><p>Enterprise risk management (ERM) offers organizations a more comprehensive assessment of risks, compared with an approach to managing risk that has historically been functionally siloed. But a survey by Baker Tilly and the Internal Audit Foundation found that companies have been slow to adopt ERM or to take full advantage of the strategic benefits it offers once it\u2019s been implemented.<\/p><\/div>\n<div class=\"article-narration\">\n\n    <a href=\"#narration\" id=\"narrationModal\" class=\"j-audio-trigger current-speed\" title=\"Are Leaders Flying Blind on Risk?\">\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"50\" height=\"50\" viewbox=\"0 0 50 50\" fill=\"none\">\n            <g clip-path=\"url(#clip0_2534_8292)\">\n            <g clip-path=\"url(#clip1_2534_8292)\">\n            <path d=\"M25 50C38.8071 50 50 38.8071 50 25C50 11.1929 38.8071 0 25 0C11.1929 0 0 11.1929 0 25C0 38.8071 11.1929 50 25 50Z\" fill=\"#005B9C\"\/>\n            <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M19.985 25.0001V17.0708C19.985 16.5579 20.6336 16.2585 21.1033 16.5547L27.245 20.4252L33.6852 24.4837C34.0849 24.7358 34.0849 25.2645 33.6852 25.5166L27.245 29.5753L21.1033 33.4458C20.6336 33.7418 19.985 33.4423 19.985 32.9294V25.0001Z\" fill=\"white\"\/>\n            <\/g>\n            <\/g>\n            <defs>\n            <clippath id=\"clip0_2534_8292\">\n            <rect width=\"50\" height=\"50\" fill=\"white\"\/>\n            <\/clippath>\n            <clippath id=\"clip1_2534_8292\">\n            <rect width=\"50\" height=\"50\" fill=\"white\"\/>\n            <\/clippath>\n            <\/defs>\n        <\/svg>\n        <span>Listen to &#8220;Are Leaders Flying Blind on Risk?&#8221; <span>(02:53)<\/span><\/span>\n    <\/a>\n\n    <audio id=\"narration\" preload=\"none\" title=\"Are Leaders Flying Blind on Risk?\">\n        <source src=\"https:\/\/sloanreview.mit.edu\/wp-content\/uploads\/2025\/09\/Article-16-Fall-Reality-Check-Narrated-Articles-teaser.mp3\" type=\"audio\/mpeg\">\n    <\/source><\/audio>\n\n<\/div>\n\n\n\n\n\n\n<p><span class=\"smr-leadin\">At a time of high uncertainty<\/span> and volatility, <a href=\"https:\/\/sloanreview.mit.edu\/article\/break-down-silos-for-visibility-into-enterprise-risk\/\">enterprise risk management (ERM)<\/a> is a set of best practices that promises organizations the visibility needed to keep business plans on track. Ideally, when leaders have a holistic view of risks across the organization, they are better able to weigh the potential costs and benefits of their strategic options. However, a survey conducted by Baker Tilly and the Internal Audit Foundation earlier this year reveals that for more than 4 in 10 businesses that have implemented ERM, the resulting insights aren\u2019t informing strategic decision-making.<\/p>\n<p>Just 49% of the 567 corporate risk professionals surveyed agreed that risk awareness now resonates across the organization. That indicates that ERM practice has far to go if it is to meet the goal of managing risk across the entire enterprise. While 57% of respondents agreed that risk insights and\/or capacities are used to guide decisions on business expansion and\/or process optimization, that leaves a large minority failing to reap the full benefits of ERM.<\/p>\n<div class=\"callout-highlight callout-highlight--transparent\">\n<aside class=\"l-content-wrap\">\n<article>\n<h4>Room for Improvement in Enterprise Risk Management Practice<\/h4>\n<p><img decoding=\"async\" alt=\"Room for Improvement in Enterprise Risk Management Practice\" src=\"https:\/\/moresourcing.com\/wp-content\/uploads\/2025\/09\/Are-Leaders-Flying-Blind-on-Risk.png\"\/><img decoding=\"async\" src=\"https:\/\/moresourcing.com\/wp-content\/uploads\/2025\/09\/Are-Leaders-Flying-Blind-on-Risk.png\" alt=\"Room for Improvement in Enterprise Risk Management Practice\"\/><\/p>\n<p class=\"attribution\">Source: Baker Tilly and the Internal Audit Foundation\u2019s ERM Maturity Survey, conducted Jan. 7-Feb. 7, 2025; n = 567.<\/p>\n<\/article>\n<\/aside>\n<\/div>\n<p>Timeliness of ERM assessments is also an issue. About 1 in 4 respondents said their organization had not conducted an enterprisewide risk assessment in the past three years. A lack of resources and personnel, and a lack of leadership support, were identified as the top causes of the delay. <a href=\"https:\/\/connect.bakertilly.com\/l\/870811\/2025-06-05\/7pspy8\/870811\/1749160371KeDcWV68\/enhanced_enterprise_risk_management_strategic_decision_making.pdf\" target=\"_blank\">In their report<\/a> on the survey, the researchers point out that \u201cconsidering the extraordinary level of disruption and risk volatility since 2020\u2026a single risk assessment in three years would be insufficient for most organizations.\u201d Of those that have assessed enterprisewide risk in the past three years, most (67%) have done so annually. Still, only a quarter of those doing annual assessments align them with the business cycle \u2014 which means that strategic planners may not have the freshest perspective on risks as they set priorities for the coming year.<\/p>\n<p>How can more organizations get on a good track to mature ERM practice? The researchers advise greater communication and collaboration, as well as role clarity. That means having representatives from key risk functions meet at least quarterly, and adding specialized committees for key risk areas like cybersecurity. Companies should also provide annual risk training to direct stakeholders in the ERM process, if not to all employees, to ensure that risk factors are widely understood.<\/p>\n<aside class=\"article-ad ad-300  ad-300x250 ad-desktop\">\n                \n                <\/aside><aside class=\"article-ad ad-300  ad-300x250 ad-mobile\">\n                \n                <\/aside>\n\n    \n    \n    <div class=\"article-left-col--footer\">\n        <section class=\"article-topics\">\n    <h4 class=\"article-topics__title\">Topics<\/h4>\n    \n<\/section>\n            <section class=\"article-section\">\n\n        <h4 class=\"article-section__title\">Radar<\/h4>\n        <p>\n            Brief insights on emerging trends in management from the opening pages of <cite>MIT Sloan Management Review<\/cite>\u2019s quarterly print magazine.        <\/p>\n        \n        \n        <a href=\"https:\/\/sloanreview.mit.edu\/series\/radar\/\" class=\"article-section__link\">\n              \n           More in this series\n                      <\/a>\n\n    <\/section>\n    <\/div>\n\n        <div class=\"article-authors\" id=\"article-authors\">\n                <h4 class=\"article-authors__title\">About the Author<\/h4>\n        <div class=\"article-authors__bio\"><p>Elizabeth Heichler is editorial director, magazine, at <cite>MIT Sloan Management Review<\/cite>.<\/p>\n<\/div>\n    <\/div>\n\n    \n    \n        \n\n    \n\n<\/div>\n        <\/div>\r\n\r\n<br>#Leaders #Flying #Blind #Risk","protected":false},"excerpt":{"rendered":"<p>Radar Many companies fail to connect an enterprisewide view of risk to strategic planning and decision-making. Elizabeth Heichler September 08, 2025 Reading Time: 2 min\u00a0 Topics Radar Brief insights on emerging trends in management from the opening pages of MIT Sloan Management Review\u2019s quarterly print magazine. More in this series Primeimages\/Getty Images Summary: Enterprise risk [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3059,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-3058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Are Leaders Flying Blind on Risk? - MORE SOURCING LTD<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/moresourcing.com\/en\/are-leaders-flying-blind-on-risk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Leaders Flying Blind on Risk?\" \/>\n<meta property=\"og:description\" content=\"Radar Many companies fail to connect an enterprisewide view of risk to strategic planning and decision-making. 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Elizabeth Heichler September 08, 2025 Reading Time: 2 min\u00a0 Topics Radar Brief insights on emerging trends in management from the opening pages of MIT Sloan Management Review\u2019s quarterly print magazine. 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