Indian businesses taking the lead, says BT Global Services
British companies are falling behind their developing economy competitors when it comes to taking calculated risks, according to a new study from BT Global Services. Ninety per cent of Indian companies view risk as a means of increasing competitive advantage, compared to just 44 per cent in the UK, who tend to shy away from risks.
The research, conducted by Datamonitor on behalf of BT Global Services, reveals an interesting gap between developing economies and the UK when it comes to making profitable business decisions based on their calculation of the risk involved.
The key to the difference in attitudes seems to be the role of risk in enabling business development. Eighty-five per cent of Indian companies see risk management as a tool to foster innovation and creativity, whereas only 34 per cent of UK companies share that sentiment. The research suggests that a more proactive attitude towards risk is leading to a fuller understanding of opportunities for originality and resourcefulness in India and other developing economies.
This commitment to treating risk management as core to business growth has also resulted in the overwhelming majority of Indian companies (90 per cent) appointing a manager with overall responsibility for risk. By contrast, only 14 per cent of businesses in the UK have taken a similar step. Where Indian firms have appointed a “risk supremo”, 94 per cent have elevated the role to board level, compared with just 63 per cent in the UK.
John Dovey, president UK corporates, BT Global Services, said: “There are some well-established FTSE100 companies working in complex environments who have to manage huge levels of risk on a daily basis. But in general, UK companies tend to see the kind of risks associated with aggressive economic growth as something to avoid, while competitors in India have had to see them as something to manage.
“By taking a pragmatic view of managing risk, Indian companies are better able to seek considerable growth by taking on and offering their customers aggressive, innovative commercial propositions.”