KPMG Survey Finds Centralized Risk Management Is Critical to Navigating Growing Risks
Key Takeaways
- Centralized Risk Structures Lead to Better Performance: 48% of organizations have centralized risk and resilience structures, but only 26% report strong collaboration and a holistic view of risks. Integration is essential for effective management.
- Leadership Accountability Is Crucial: Only 41% of executives are confident that their C-suite fully understands the risks associated with critical process failures, highlighting the need for stronger leadership accountability and proactive action.
- Technology Is a Key Enabler: 68% of organizations are using specialized technology, AI, or advanced analytics to manage risks, but these tools need to be part of a broader, integrated strategy to be effective.
- Barriers to Risk Management Persist: Over two-thirds of organizations face significant barriers in managing risks, often due to siloed communication and lack of integrated risk insights, making collaboration essential for success.
- Integrated Strategies Are the Future: To stay resilient, organizations need an integrated approach to risk and resilience, aligning governance, technology, and processes to create a cohesive and proactive risk management strategy.
Deep Dive
The world is changing faster than ever, and with it, the landscape of risk and resilience. The 2025 KPMG Risk & Resilience Survey takes a deep dive into how organizations are facing these growing challenges. It clear that the era of “good enough” risk management is over. As risks grow in both size and complexity, companies can no longer afford to rely on outdated strategies. The survey offers crucial insights into what works, and what doesn’t, when it comes to building resilience in today’s fast-paced, volatile world.
The survey found that 48% of organizations have centralized their risk and resilience structures. That’s a solid starting point, but here’s the kicker, only 26% of those organizations report strong collaboration and a broad, cross-functional view of risks. It’s as if companies are putting all their eggs in the basket of centralization, but forgetting to pass the basket around the whole team. Centralization is critical, but without collaboration and a holistic approach, it doesn’t do much to actually drive performance.
For organizations to truly thrive, they need to create an integrated strategy, one where governance, processes, and technology work together seamlessly. Without this integration, you’re left with disconnected pieces that struggle to connect the dots.
Risk Awareness Must Translate to Action
If there’s one area where businesses are falling short, it’s at the leadership level. While 41% of respondents are confident that their C-suite fully grasps the risks associated with a major process failure, that still leaves a significant gap. The issue isn’t just understanding risks—it’s about acting on them. Leaders need to be proactive, not just aware, and for that to happen, they need to foster a culture where risk management is a shared responsibility.
Getting executive buy-in isn’t a one-time pitch; it’s an ongoing conversation that requires clear communication and alignment of priorities. Leaders who can unify their teams behind a cohesive risk strategy are more likely to see success. It’s all about taking accountability, making the hard decisions, and being willing to take action when it counts the most.
Technology Is a Game-Changer, but Only If It’s Part of the Plan
It’s no secret that technology is changing everything. From AI to advanced analytics, the survey found that 68% of organizations are using these tools to manage risks. And 65% are using advanced analytics to help them navigate the growing complexity of the modern risk landscape. But here’s the catch: technology isn’t the magic solution on its own. It needs to fit into a broader, integrated risk management strategy.
When aligned with the company’s overall mission and goals, these technologies can become powerful tools that allow organizations to respond quickly and effectively to emerging risks. But without a clear strategy that connects technology to business objectives, even the most advanced tools can fall flat.
Despite all the advances in technology and centralized structures, over two-thirds of organizations still face significant barriers in their risk management efforts. The reason? It’s not a lack of desire or effort, it’s the fact that so many companies still struggle with siloed communication and a lack of integrated risk insights. Teams might be working hard, but without the right coordination, their efforts don’t add up to a comprehensive risk management plan.
To break through these barriers, organizations need to invest in integrated risk management—not just a set of tools or a checklist, but a truly collaborative, transparent process that encourages smart, strategic risk-taking. The days of managing risks in isolation are over; today, it’s all about connection, communication, and a shared understanding of the bigger picture.
Embrace Integration for Long-Term Resilience
So, what’s the bottom line from the KPMG Risk & Resilience Survey? The most resilient organizations are those that integrate their approach to risk and resilience. Centralized structures are essential, but they must be paired with strong collaboration, a proactive leadership mindset, and technology that aligns with the organization’s goals. When all these elements work together, they create a resilient, agile organization that is well-positioned to navigate the risks of tomorrow.
It’s time for organizations to move beyond “good enough.” With the right strategies, tools, and leadership, risk and resilience can be the foundation for growth, innovation, and long-term success.
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