Survey Highlights Risk Management’s Evolution
A global joint survey by the Professional Risk Managers’ International Association (PRMIA) and SunGard reveals an attitudinal shift among risk managers, who increasingly view risk management as a strategic core competency rather than just a regulatory obligation.
The survey polled more than 200 banking risk managers across the world about their collateral and exposure management priorities. Key findings include:
“These key findings highlight an important step change for the industry,” said Sven Ludwig, regional director of PRMIA and senior vice president (SVP), risk management and analytics, SunGard.
“While it is surprising that regulatory requirements such as stress testing rank as a lower than expected priority, this also suggests that the practice of risk management is evolving to become more strategic and operational. This is particularly evident when looking at today’s collateral and exposure management priorities.
“Taking a longer-term view towards risk will undoubtedly enable banks to successfully navigate the more complex regulatory landscape, but also lay the foundations for an effective risk strategy which drives competitiveness from compliance”
Jochen Schneider, chief operating officer (COO), SunGard’s retail banking business, added: “Collateral is one of the key focal areas to mitigate systemic risk. Strategic investments here can improve all three levels of shareholder value: revenue enhancement, cost containment and capital efficiency.
“More specifically, banks that improve their collateral and exposure management capabilities can more effectively manage lower interest rate risk and therefore enjoy higher equity leverage. We see a continued focus among banks on enhancing these capabilities, as they increasingly recognise their importance in helping to better manage risk in the long-term.”
A full copy of the research report can be obtained from Petra Shuttlewood – contact firstname.lastname@example.org or +44 (0)7702 915043.