Survey Says Better Risk Management Would Have Lessened Credit Crisis
According to a global survey of 316 financial services executives, over 70% of respondents believed that the losses stemming from the credit crisis were largely due to failures to address risk management issues. The results of a global survey conducted by the Economist Intelligence Unit on behalf of SAS highlighted enterprise risk management strategies. Executives now appear to be paying attention, with 59% of survey respondents saying the credit crisis has prompted them to scrutinise their risk management practices in greater detail. In anticipation of closer scrutiny from regulators, many institutions are revisiting their risk management practices. In addition, recent reports by the Financial Stability Forum (FSF) and the Institute for International Finance (IIF) are now calling for closer scrutiny of the risk management process. Survey respondents identified several challenges such as data and company culture, which have affected the implementation of comprehensive risk approaches. For many executives at financial services firms, access to relevant, timely and consistent data is a major obstacle. In addition, almost half of the respondents believed fostering a culture of risk management was the most widely encountered challenge.