Strategic risk management remains an immature activity in many companies, according to a new survey by the Economist Intelligence Unit.

The survey found that senior executives recognise the importance of strategic risk management, but only 35% believe their company is effective at anticipating emerging risks.

They say the biggest threat to their businesses is weak demand and market volatility during the next 12 months.

But they regard identifying new and emerging risks as the key objective of risk management departments.  

The survey of 500 senior executives from insurance and banking companies around the world found only a minority of companies involve risk functions in their key business decisions.

“Risk managers have long hoped to play a more prominent role in strategic decision-making, but our survey suggests that this aspiration is still unfulfilled,” the survey said.

“Less than one-half of companies involve their risk functions formally in any major strategic decision, such as evaluating new market investments or merger and acquisition opportunities.

“Few companies even expect risk functions to play a support role in decision-making, with just 1% saying they expect risk managers to provide analysis to help management set corporate strategy.”