Financial institutions have scope for improvement in risk management, says PwC
Leading financial institutions are moving towards a more holistic and integrated approach to risk management, but need to continue to improve their risk management processes, according to a new survey from financial services firm PricewaterhouseCoopers (PwC).
As a result of its findings, PwC recommends that financial institutions must assess the balance between risk and return, showing greater appreciation for the risks to their franchise and shareholder value. Senior management must then convert this assessment into a corrective action plan and focus on accurate forecasts, stress testing and reporting, PwC added.
Hans-Kristian Bryn, global risk management partner at PwC in London, said the survey illustrates that drawing a complete picture of risk appetite and exposure is clearly a daunting task, even for pioneering institutions. “With the forthcoming implementation of the Basel II Accord, which will require banks to put aside capital to cover operational risk, institutions need to tighten their risk management systems,” Bryn said.
The survey of enterprise risk management was conducted among chief risk officers at 14 of the world’s leading financial institutions, and is a follow-up to a study launched by PwC in July 2002, entitled ‘Taming Uncertainty: Risk Management for the Entire Enterprise’. The study stressed that many financial institutions are not managing the full spectrum of risks effectively.
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 Foreign exchange
Natixis turns on the taps in flow trading
French bank boosts flow business, balancing structured solutions capabilities
Stemming the tide of rising FX settlement risk
As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market
Power-reverse to the future: falling yen revs up PRDCs again
Pressure on Japanese unit sparks revival in power-reverse dual currency notes
Credit Suisse and Commerz latest banks to ditch hold times
Mizuho also confirms zero last look add-on but MUFG’s policy unclear on the controversial FX practice
Has Covid stopped the clocks on FX timestamp efforts?
Budget reallocation may not be the only factor stalling standardisation progress, say participants
EU benchmark drama set for cliffhanger end
Access to key FX rates due to be decided six months before potential cut-off
Banks rent ready-made algos for FX trading
NatWest, XTX Markets and others develop new outsourcing model for tech
Who killed FX volatility?
Beyond central bank policy, traders see a range of hidden structural factors at work
Most read
- Basel Committee reviewing design of liquidity ratios
- Breaking out of the cells: banks’ long goodbye to spreadsheets
- Too soon to say good riddance to banks’ public enemy number one