A new Economist Intelligence Unit/Navigant survey says the stakeholders in risk management are changing
LONDON - Chief compliance officers and chief risk officers are the main beneficiaries of a swing towards vetting business activities since the onset of the financial crisis, according to a new survey carried out by the Economist Intelligence Unit commissioned by Navigant Consulting's financial services practice.
There was an 11% gain of respondents saying chief compliance officers had unilateral authority to intervene and curtail specific business transactions. For chief risk officers the gain was 9%, followed by the corporate legal counsel and price verification group, both of whom scored 5% gains.
Conversely, the survey recorded a 4% drop in the business veto accorded to chief executive officers, while the influence of customer relationship managers also fell by 3% and the veto of the board and "sales/marketing" by 1% apiece.
Disclosure was expected by 72% of participants to be a major focus of future regulation. The report says better risk intelligence and communications are needed to inform sound business decisions.
The survey also said risk functions were expected to grow in size and closer towards the business activities than in the past, with a general shift towards having more stakeholder inputs into risk assessment and reporting.
The survey polled 180 financial professionals, 41% of whom were senior corporate executives (including chief risk officers and board members). Navigant has included the findings within a report, authored by John Schneider, managing director of its financial services consulting practice.
The report can be read here.
More on Risk Management
ABSTRACT This experimental study investigates the behavior of banks in a large-value payment system. More specifically, we look at the reactions of banks to disruptions in the payment system and theway...
ABSTRACT Central counterparties (CCPs) performed extremely well during the recent financial crisis. Clearing through CCPs has since been promoted by legislators around theworld as a way to mitigate risk...
ABSTRACT Nonbanks such as central counterparties (CCPs) are a useful lens through which to see how regulators view the role of the lender of last resort (LOLR). This paper explores the avenues that are...
Nonbanks such as central counterparties (CCPs) are a useful lens through which to see how regulators view the role of the lender of last resort. The first paper in this issue, "Limiting taxpayer "puts":...
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.