One-third of risk managers believe their function is under-resourced.
Which areas of risk are weighing most heavily on organizations?
Our survey indicated that having a clearly defined mandate is a prerequisite for effective risk management. In many instances, failure to have a clear mandate can hinder budgeting, allocation of resources and influence. Therefore, it is potentially problematic that only 71 percent of those surveyed said their function was well defined.
Definition of risk management mandate
For larger firms, technology is said to be an area that is under-resourced. Risk managers at smaller firms reported technology and personnel/headcount as areas in which they are lacking. In our view, investing in a diversity of expertise created by employing former traders, programmers and auditors can be greatly advantageous.
This survey shows that most risk managers believe the shifting regulatory landscape represents one of the most serious challenges to managing risk globally. In our view, changing regulations and a lack of regulatory harmony across countries have made regulatory change a major source of potential risk. It is therefore critical for risk managers to share their perspectives and expertise with the compliance professionals who focus so intently on the regulatory landscape.
Key challenges and opportunities
“Not everyone defines or thinks about risk in the same way. Establishing our ‘highest common denominator’ in risk management across the world is a key challenge.” – Survey participant
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