More than a quarter of the world's financial institutions - primarily commercial and retail banks and insurers - have no independent risk oversight function, according to a new survey by professional services firm Deloitte & Touche.The relatively high proportion of firms with no designated risk oversight function is surprising given the collapse of Houston energy trader Enron late last year.But 62% of financial institutions surveyed had implemented a centralised risk management process, for example, by having a chief risk officer responsible to the main board of directors.
Meanwhile, half the survey respondents did not have capital allocation approaches in place to support the new proposed credit risk requirements in Basel II.
The survey also found that firms were challenged by risk technology, with 55% reporting their chief concern regarding risk technology was the inability to integrate disparate risk management systems. A total of 35% of respondents cited limitations on the functionality of current risk systems as a major concern.
There was also evidence of an increased emphasis among respondents on business continuity and disaster recovery planning since September 11.
More on Risk Management
Accounting standard is coming, say some - others see no KVA requirement
This paper identifies three steps in sourcing risk.
Welcome to The Journal of Operational Risk's Online Early Forum. Here you will find the latest peer reviewed, accepted papers before they are available in print. With Online Early publication, users...
Respondents reveal huge gulf in pricing for generic swap
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.