Australian companies show a strong interest in identifying risks within their businesses, according to an Aon global survey.

“This reflects an appetite for local organisations to understand their level of risk maturity and establish robust plans to enhance it, often above and beyond what is required from a regulatory point of view,” Aon Risk Maturity Index Regional Lead Marcus Vaughan said.

This year’s Aon Risk Maturity Index Insight Report links greater board oversight of risks with higher profits and lower volatility.

The index, developed with the University of Pennsylvania’s Wharton School, is based on an international survey of almost 700 organisations.

Mr Vaughan says Australia led the way on participation in the index.

The report says companies with the highest risk maturity rating experience share price volatility 34% lower than those with the lowest rating.

A top ranking results in an average 42% return on equity, compared with -23% for companies on the lowest index rung.