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Business leaders 'failing to get risk information'

19 July 2011

Board members of organizations are failing to gain access to information relating to risk because of an "invisible glass ceiling", it has been claimed.

A new report suggests individuals such as non-executive directors are not being provided with the risk management data they require in order to prevent corporate failures.

Compiled by Cass Business School for association Airmic, the study revealed that lines of communication and skills within businesses need to be improved in order to reduce the threat of corporate crises.

Of the 23 major companies analyzed, six were found to have collapsed and many of the remainder suffered damaged reputations and substantial losses, with governments forced to bail out three organizations.

"More big corporate failures are inevitable as long as directors are blind to the risks they face," declared John Hurrell, Chief Executive of Airmic.

A recent poll of Airmic members discovered that risk managers were particularly concerned about compliance of multi-national insurance programmes, business interruption, reputational threats and supply chain dangers.

Read about BSI's risk standards here