Without a doubt, banks continue to recognize the shortfalls in past practices and are committed to driving change...
Ernst & Young, on behalf of the Institute of International Finance (IIF), surveyed 62 of the largest banks to assess banks' progress in the implementation of risk governance principles and practices outlined in the 2008 IIF report.
Survey of improvement of internal practices: Institute of International Finance (IIF)
Across the board, banks have embraced the IIF's principles to advance risk management, risk governance and risk appetite. Among the 62 chief risk officers (CROs) and senior risk executives who participated in our survey, the most common improvements cited included strengthened management, increased control of liquidity risk and refined reporting systems.
Yet, more work is needed on a number of fronts, from integrating more holistic and enterprise-wide stress testing to shifting the organizational culture to create a shared ownership of risk.
Challenges abound as banks, while committed to improving risk management practices, report a continued recovery from the crisis and difficulty navigating the volatility of the markets.
In this report, we examine banks' progress against the eight main areas of focus as outlined by the IIF in 2008.