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2012 US asset management risk survey: future investments – EY – Asset Management - EY - United States

US asset management risk survey 2012

Future investments in risk management

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Future investments favor technology and processes over head count.

Are asset managers under-investing in risk management?

An increasing number of survey participants have focused on their processes, technology and headcount. For many, investments that drive efficiency through greater use of data and automation is the goal.

For most risk categories, firms are planning investments in technology and processes versus headcount.

Future investments in specific types of risk
EY - Future investments in specific types of risk

The vast majority of survey participants are not able to say whether their budgets have increased, decreased or remained static. In our view, formal budgeting provides a clear opportunity for risk management leaders to build greater stature and influence within their organizations.

Risk management groups that link financial costs to mandates can more precisely measure and communicate the quantitative and qualitative value being delivered. Without such performance measures, risk management could continue to be viewed as an easy place to under-invest when revenues come under pressure.

While responses to other questions suggest that many risk managers feel that the function’s stature has grown, responses to this budget related question indicate that there is much room for improvement at many firms.

“Centralized data will allow us to spend less time getting the data and more time analyzing it.” – Survey participant

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