According to Tarlok Teji, partner at Deloitte & Touche's Enterprise Risk Services, organisations are losing out and failing to realise value because ego, greed and fear are stopping them from employing effective risk management strategies.
Speaking at the annual conference of the Institute of Chartered Accountants in June, Teji said that fast-growing companies in particular are still not managing risk to create value.
As well as failing to employ proper risk management strategies, companies were compounding the error by paying lip service to processes they simply have not got.
"People think they've done it, but they haven't. A lot of chief executives are talking a good game but when you scratch under the surface you'll find very few who have truly embedded risk management into the culture of their organisations.
"It takes time, but companies are so busy trying to chase sales and grow the business that they haven't quite understood the importance of risk management."