Corporate fraud, data theft, financial reporting risk-and a host of others-can cost organizations dearly, says Ernst & Young in a new survey. That's why it's so important for today's businesses to get their risk management strategies right. Doing so protects organizations' valuable assets, and can also create a competitive advantage.

In The future of risk: Protecting and enabling performance, Ernst & Young finds 96 percent of organizations believe they can improve risk management, while nearly half say committing additional resources to risk management could actually drive a competitive edge. However, 61 percent say they won't commit more resources to risk management over the next 12 to 24 months. Instead, companies are focused on doing more with the same or less resources and budget.

The survey further finds coverage and focus of multiple risks functions has become increasingly difficult to manage and is compounded by a lack of alignment. Fifty percent of respondents say they have gaps in coverage.

Ernst & Young says there are five questions to consider for balancing risk, cost and value:

1. Do you understand the risks that your company faces
2. Do you have a comprehensive risk framework in place?
3. Do you have duplicative or overlapping risk functions?
4. Are the risks you take aligned to your business strategies and objectives?
5. Are you taking the right risks to achieve competitive advantage?