Financial directions - Ignoring risks is a risky business.

(From Financial Director)

Some 21% of investment professionals believe that property-related hazards are a "top business risk" to the companies they analyse or invest in, compared with non property-related hazards.

However, the reverse is true for FDs, treasurers and risk managers - 69% of whom view property-related hazards as the most likely area for business-critical risk.

The 2004 Protecting Value Study, produced by FM Global, took the opinions of 400 senior finance, risk and treasury executives within 'global 1,000' companies, and more than 200 investment professionals.

It found that investment professionals lack awareness on some of the hazards faced by the businesses they analyse, or view these businesses as "too internally focused" on risk.

Finance professionals and risk managers in North America are most concerned with bricks and mortar-related hazards, such as natural disaster (21%) or fire (26%). UK FDs said supply chain problems are the biggest threat to revenues.

"There is strong recognition among the investment community of the importance of effective risk management," according to Ken Davey, FM Global's MD of EMEA and Asia-Pacific. "However, it's clear that investment professionals don't feel they know enough about the major threats to the businesses they are analysing and valuing."