
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Repo clearing rule could raise SOFR volatility – OFR analysts
Analysis of 2022 data finds large divergence in tail rates but no change in median
OCC’s security chief on generative AI with guardrails
Clearing house looks to scale technology across risk and data operations – but safety is still the watchword
The Term €STR transition: challenges and market readiness
The progress, challenges and factors shaping the adoption of Term €STR as financial institutions transition from Euribor
Mitigating risks with derivative ETFs
S&P Global Market Intelligence's Enrico Piccin discusses the evolution of synthetic ETFs, regulatory impacts, and balancing leverage and transparency
EU firms fear dollar liquidity becoming tariff bargaining chip
Eurozone banks rely on dollars for 17% of funding; trade war escalation could affect access
Op risk data: Luna crypto chicanery shrinks Galaxy coffers
Also: Down under and dirty – motor finance scandal comes to Oz, and 2024 in review. Data by ORX News
Amid tariff turmoil, banks warned not to fudge IFRS 9 overlays
Flip-flopping US policies challenge loan loss provisioning models; EU regulators take watching brief
Why AI will never predict financial markets
Laws that govern swings in asset prices are beyond statistical grasp of machine learning technology, argues academic Daniel Bloch