Deloitte's 2004 banking industry survey finds risk management rising up the corporate agenda, as financial institutions continue to struggle with integration of their systems and platforms.
Four out of five major financial firms now have a chief risk officer, but the quest for enterprise risk management remains an elusive goal, according to this survey of 162 financial institutions.
Three quarters of CROs in financial services firms report to their chief executive or the board of directors, says Deloitte, in accordance with a 25% increase in board-level oversight of risk management over the last two years.
But, while 38% of respondents claim to have the right organisational structure in place to cope with the demands of global risk management, only 15-16% report progress in integrating methodology, data, and systems.
While information technology is considered to be the key enabler of risk management architecture, respondents report a host of continuing challenges in developing adequate risk systems. More than half (52%) cite a lack of integration among systems as a major concern and 42% cite it as a minor concern. Lack of flexibility and scalability as well as performance issues are also noted as key challenges.
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