Changes in risk and compliance models are key crisis lesson
A Protiviti survey highlights operating model lessons over Icaap and remuneration changes
LONDON – Changes to operating models, and strategies for risk and compliance, represent the key lesson to be learned from the financial crisis. This is according to an event survey by risk and compliance software and consultancy firm Protiviti.
Changes to operating strategies and models were highlighted by 37% of respondents – senior risk and compliance managers – while the importance of changes to remuneration policies was flagged by 2%. Only 2% highlighted extended stress-testing scenarios for the Financial Services Authority’s (FSA) internal capital adequacy assessment process (Icaap) as their key priority.
The FSA is expected to publish new revisions to its Icaap regime for risk-based capital assessment, and also indicated its intention to supervise remuneration policies through its “Dear CEO” letter to chief executive officers in October.
Jonathan Jesty, a director at Protiviti, says: “Our survey shows that the biggest challenge in the minds of risk and compliance professionals is to how to get a strong risk management culture and awareness back into the business and the boardroom after years of complex technical regulatory change which has probably resulted in too much dependency on the control functions. Changes to remuneration principles and Icaap can be important tools of course, but the survey confirms there are more fundamental, business issues to be addressed.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Risk management
FICC takes flak over Treasury clearing proposal
Latest plans would still allow members to bundle clearing and execution – and would fail to boost clearing capacity, critics say
Buy side would welcome more guidance on managing margin calls
FSB report calls for regulators to review existing standards for non-bank liquidity management
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
Benchmark switch leaves hedging headache for Philippine banks
If interest rates are cut before new benchmark docs are ready, banks face possible NII squeeze
Op risk data: Tech glitch gives customers unlimited funds
Also: Payback for slow Paycheck Protection payouts; SEC hits out at AI washing. Data by ORX News
The American way: a stress-test substitute for Basel’s IRRBB?
Bankers divided over new CCAR scenario designed to bridge supervisory gap exposed by SVB failure
Industry warns CFTC against rushing to regulate AI for trading
Vote on workplan pulled amid calls to avoid duplicating rules from other regulatory agencies
Top 10 op risks: change brings challenges
Higher interest margins and a trend toward insourcing drive major tech projects