Developed by Aon and The Wharton School of the University of Pennsylvania, the Aon Risk Maturity Index was introduced in 2011 as a tool to assist senior finance, risk and legal professionals in identifying and addressing critical areas of concern in their risk management programs. For the MAPI collaboration project, Aon analysts examined the responses from 56 MAPI members who participated in the Risk Maturity Index. Throughout this report, this aggregate data is referred to as the "MAPI cohort". Aon analysts have examined the MAPI cohort in conjunction with Aon's proprietary Risk Maturity Index database to develop this body of research.

After the economic challenges of the past decade, industrial companies realized an important
truism: It is becoming imperative to embrace digital to meet changing customer expectations
and respond to competitive threats.

The global population of connected things has already eclipsed the world's human population.
 

This survey, conducted in collaboration with PwC, evaluated manufacturers' tax functions and examined how they are positioned with respect to leading tax technology practices, where they stand in terms of adopting and enabling tax technology initiatives, the operational challenges they are facing, their satisfaction with existing technology; and where they stand with respect to developing a tax technology strategy.

Total shareholder return (TSR)—the sum of dividend yield and share price appreciation—is widely used by boards and governance committees because of rising pressure in the investment community, increased investor activism, watchdogs such as ISS, and say-on-pay practices. Many boards are tying pay to TSR without realizing that it can be misleading and opaque.

Inventory is often considered the most valuable category of assets on manufacturers’ books. Since it has its downsides—tying up large amounts of cash and sometimes diminishing in value—it is common practice to minimize inventory as much as possible without hurting customer service levels. And when it comes to managing inventory, manufacturers seem to have reached a point of diminishing returns.

• Of the production positions requiring basic/entry skills, vacancies for welders, machine operators with no computer skills, and crane operators were ranked as requiring the most time to fill.
• Of the production positions requiring intermediate/advanced skills, vacancies for controls techs, engineering techs (not degreed engineers), and toolmakers were ranked as requiring the most time and resources to fill.
• Vacancies for three engineering positions—electrical, controls, and mechanical— were ranked as requiring the most time and resources to fill.

The proportion of respondents that indicated that the chief audit executive (CAE) at the company holds the title of either vice president or senior vice president (48 percent) exceeded the proportion of companies (30 percent) where the CAE has the title of director. In the 2010 survey, a similar percentage (46 percent) had a CAE with a title of vice president or senior vice president. The proportion of companies indicating that the CAE is an officer of the company has been on the decline since the 2007 survey, when it was 36 percent.

When asked about the basic reporting structure within the corporate RM function, 71 percent of respondents said it is hierarchical (up from 64 percent in 2010 and 49 percent in 2006), while only 5 percent characterized it as team-oriented. Seventeen percent (down from 26 percent in 2010 and 33 percent in 2006) report having a hybrid system. For 87 percent of respondents, the reporting structure has not changed significantly in the past five years.

Most respondents (57%) have a single corporate-level sustainability leader, either in the form of an individual primarily responsible for the company’s sustainability efforts or a chair of a corporate sustainability committee. Senior sustainability executives tend to report to a general counsel or law department (23%) or to the chairman (15%). Seventy percent of sustainability leaders have been in the sustainability profession for less than a decade and a similar proportion hold master’s degrees.