An article relating to this blog post on Finextra:
Risk management overhaul tops bank agendas for 2009 - KPMG
A lack of stature and resources for risk management are cited as leading contributors to the credit crisis, according to interviews with almost 500 global bank executives conducted by the Economist In...
Roy McPherson - London
07 January 2009 - 11:01
Is it only me or do the statistics of this survey shock you too? This article states that 85% of respondents say they have reviewed, or are in the process of reviewing, their risk procedures. Yet only 42% of respondents have a plan to make fundamental changes
to their risk processes. Does this mean that the 43% who are going to do nothing post review believe their risk processes to be up to the job, does this mean that this same percentage have been untouched by the current economic travails and that their current
processes helped them avoid any of the write downs so prevalent in the industry. Where do the Regulators go with this? I thought they were in the process of jumping all over the banks (maybe they haven't jumped very high?) to beef up their approach in this
area and yes if this percentage is true its a very weak response. As for the 45% who say their board lacks risk expertise; I think the shareholders will be most interested to find out which banks are which. Having said that the report then states that 78%
of respondents want to improve the way risk is measured and reported, thank heavens for that, there is a light at the end of the tunnel it just needs to reach the upper echelons of the banks decision making tree.