FTSE 500 companies' perception of the level of risk faced by their businesses has grown over the last year, according to the second annual Managing Risk survey, conducted by the Institute of Chartered Accountants in England & Wales (ICAEW) and The Risk Advisory Group (TRAG).

In all but one of the risk categories identified by the ICAEW and TRAG, companies' perceptions of risks to their businesses had increased since 2002. The largest increases were in accounting risks, legal and regulatory risks and financial risks. Reputation was seen as the leading risk faced by businesses.

The survey showed an increase in the level of board engagement with key risks. Over half the companies now report they review risks every board meeting or once a quarter. Finance directors, heads of internal audit and CEOs have the highest level of engagement in the risk management process.