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Risk Management in Banking 2009
In cooperation with the Economist Intelligence Unit, this report examines in detail the risk management issues that helped contribute to the global financial crisis and the actions being taken to prevent such a crisis from reoccurring.
Key findings
Over 90% of banks surveyed have carried out – or are about to carry out – a review of their risk management functions
The main areas of focus are risk governance, risk culture, and the reporting and measurement of risk, with over 75% of respondents indicating increased attention in each of these areas
While 71% surveyed believe their organization’s risk function has more influence now than two years ago, and a full 81% consider risk management to be an essential source of competitive advantage, 76% say that risk management is still stigmatized as a support function
Almost eight out of ten respondents are seeking to improve the way risk is measured and reported, a clear recognition that previous models did not sufficiently measure potential risk exposure
Despite acknowledging that incentives and remuneration had a big impact on the current crisis, the majority of respondents are cautious about getting more heavily involved in setting such policies
The research included a survey of over 400 professionals involved in risk management (30% at the C-level) in 79 countries, as well as several in-depth interviews with senior executives, undertaken in October 2008.
Download the publication and press release (in Latvian) below:
The research included a survey of over 400 professionals involved in risk management (30% at the C-level) in 79 countries, as well as several in-depth interviews with senior executives, undertaken in October 2008.
Download the publication and press release (in Latvian) below:
risk_management_in_banking_2009.pdf, Size: 1.3 MB