Less than one third of senior wholesale financial services executives are confident that their employers can measure operational risk, according to the results of research by the Institute of Financial Services (IFS), a UK provider of educational support for the financial services industry.The research found that 68% of about 50 London-based wholesale executives surveyed did not believe their employers could measure operational risk.
The research was commissioned by international IT company IBM and was conducted in May, June and July this year.
IBM said firms needed to conduct qualitative and quantitative measurement of operational risk. In a set of guidelines on counterparty, market and operational risk, IBM also recommended that companies demonstrated due diligence in risk management and ensured they had effective internal systems for reporting operational risk to senior management.
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