“Basically the business model is under attack by what is happening in the market, the regulatory environment and the political sphere.”
Our annual survey finds continued progress in meeting financial reform requirements, despite regulatory and economic pressures.
EY, on behalf of the Institute of International Finance (IIF), surveyed 69 of the largest banks and six insurance companies to assess progress of risk management practices against a backdrop of economic pressures in the US and Europe, and a changing regulatory environment.
Over the past three years in which this survey has been conducted, the year-over-year results demonstrate that banks’ risk management structure has changed many times, and areas identified as weaknesses before the 2008 financial crisis are now being rectified. Chief risk officers (CROs) and other senior risk executives were interviewed for the survey report improvements in risk management.
Across the board, respondents confirm that more attention is being given to risk management factors, from establishing a risk-focused culture to developing recovering and resolution plans.
However, the study shows more work is required, particularly in the following areas:
- Embedding risk management processes into day-to-day business decisions
- Evolving risk management methodologies and approaches
- Upgrading IT systems to be operational
- Engaging all employees in risk management principles
This report reviews eight key areas of focus that impact banks and financial services firms.
Learn more about our survey results across the following topics: