Companies with sound risk management practices achieve better financial results, according to the Aon Risk Maturity Index Insight Report.

Such companies’ share prices tend to be more resilient when external shocks hit the business environment, it says.

Aon Global Risk Consulting MD Kieran Stack, who runs the index project, says the findings underscore the importance of having a comprehensive risk management policy in place.

“Strong board risk oversight and sophisticated risk-based forecasting and planning practices are critical components of a robust risk management framework and approach,” he said.

“As organisations continue to evolve and face changing economic conditions, understanding and working to integrate these practices into overall organisational strategy will be vital to success.”

The index is a collaboration with the University of Pennsylvania’s Wharton School.