For many banks, the financial crisis has led to a re-thinking of risk governance. The focus is on a top-down, enterprise-wide approach to risk management with risk reporting to the board moving to a more regular quarterly or monthly basis.
Minneapolis, MN (PRWEB) February 17, 2010
Patricia Jackson, head of Ernst & Young’s Prudential Advisory practice in Europe, Middle East, India and Africa, said: “For many banks, the financial crisis has led to a re-thinking of risk governance. The focus is on a top-down, enterprise-wide approach to risk management with risk reporting to the board moving to a more regular quarterly or monthly basis. Banks are also stress-testing for the implausible as a direct result of last year’s events.”
In March 2009, as part of the review of implementation of the recommendations in the Institute of International Finance’s (IIF) July 2008 Market Best Practices report, the IIF asked Ernst & Young to conduct a survey of banking executives to gauge the gaps against the recommendations, and identify what they are doing to bridge them.
Four key findings from the survey:
1. The focus is on risk governance and risk appetite
2. Gap analysis was driven by a top-down approach with significant board and senior management involvement
3. Banks lack agreement on degree of change needed in response to the financial crisis
4. The time scales for dealing with gaps vary and resources are facing major pressure
Read more about these findings and view the full report here.
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