For more than 20 years, former flight instructor Roger Stadtmueller has been the managing partner at Stadtmueller & Associates, PS, an accounting firm in Spokane, Washington. An active member of his professional community, Roger Stadtmueller belongs to several organizations, including the American Institute of CPAs (AICPA), the largest member association for accounting professionals in the world.
The AICPA recently released a report on corporate risks and risk management efforts. Conducted with the help of North Carolina State University, the report is titled “The State of Risk Oversight: An Overview of Enterprise Risk Management Practices.” The report surveyed more than 400 senior executives and chief financial officers.
According to the report, nearly 70 percent of respondents noted that the risks they see are growing in number and complexity. Yet less than 50 percent of the organizations surveyed have increased their risk management efforts.
Further, only 25 percent of respondents felt that risk management initiatives had been effectively integrated into companies’ strategic plans. Based on these results, the AICPA concludes that there is a disconnect between company risk and risk management efforts.
While most companies have conventional risk management initiatives in place, these plans often focus on sales risks rather than enterprise risks. As a result, many companies are underprepared to handle financial risks.
