Five years after the 2008 financial crisis, financial institutions around the world indicate that while progress has been made in improving risk management capabilities, many are still struggling with foundational elements.
To assess the state of risk management following the financial crisis, The Economist Intelligence Unit (EIU) conducted a survey sponsored by Protiviti of 350 senior-level executives at financial institutions across the globe.
Key takeaways are:
Regulatory pressures will continue to be a significant burden for financial institutions and will demand preparedness for expanded and intensified enforcement, but also lead to beneficial outcomes for clients.
While foundational progress has been made, efforts must now focus on the more granular day-to-day details in the areas of culture, accountability, team- and skill-building, and communication – particularly in the front office.
Main obstacles relate to lack of resources, inadequate funding and improving IT capacity.