NU Online News Service, Nov. 7, 12:18 p.m.EDT

A survey by a global economic think tank says it is importantfor corporations to understand that long-term planning is asimportant as short-term concerns, and more executives arerecognizing the need for making plans long into the future.

The report was released by The Economist Intelligence Unit, aglobal economic think tank, during the Economist Conferences'Risk Summit, sponsored by insurance broker Willis GroupHoldings.

The report, Getting NewPerspective on Strategic Risk, surveyed 500 global businessexecutives and highlights the dangers of allowing currentchallenges—from the on-going euro-zone crisis to the prospect of adouble-dip recession—to take priority over long-term planning.

The group notes that many business leaders will naturally focustheir attention on the immediate future and ensure their short-termfinancing needs are met. But the report warns that by prioritizingshort-term profits over long-term performance, businesses reducetheir chances of sustainable success.

Willis Group President Grahame Millwater says in a statement,“Establishing long-term risk management is at the heart ofstrategic planning and is essential to the future success of anycommercial organization. The findings of this latest global-risksurvey by the Economist Intelligence Unit reveal that although wemust address the challenges facing us here and now, we must alsoreflect upon how we are preparing our companies to face longer-termrisks in order to protect our future and ensure the sustainablegrowth and value of our businesses.”

Some key findings of the research include:

• Long-term risk management is rising on the agenda for manybusiness leaders. Over the past year, 50 percent of companies saythey have made their risk management more forward looking and agreethey should spend more time thinking about the risks they will face10 years from now.
• Links between risk management and strategy are strengthening inmany organizations. More than half of respondents say their riskfunction plays a formal role in strategy-setting and evaluating newmarket investments.
• Many companies are using scenario planning, but few embed itinto the overall strategy process. Only 20 percent of respondentssay that scenario planning plays a vital role in helping theircompany to formulate and adapt strategy in uncertain times.

The summit, held at the Willis Building in London, broughttogether more than 60 senior business executives from across-section of industry.