Infographich - Restoring confidence: Risk management capabilities in the wake of the financial crisis. An Economist Intelligence Unit research program sponsored by Protiviti.
Risk management capabilities in the wake of the financial crisis
The global financial crisis exposed major weaknesses
in many financial institutions – with capital reserves,
liquidity risk management, business operations and risk
management controls. According to a survey conducted
by the Economist Intelligence Unit and sponsored by
Protiviti, financial services firms have performed extensive
work to address these areas, but much work remains.
To review detailed results from this study,
As the industry rebuilds its
risk management practices, it
is encountering new obstacles.
• 59 PERCENT agree that because
the costs of increased regulation are
inevitable, leveraging tighter controls
to provide stronger assurances to
customers makes sense.
• 58 PERCENT perceive a positive
program of customer assurance to be
a distinct competitive advantage—and
most have implemented one already.
• 46 PERCENT are moving ahead of
regulations to offer new consumer
protections as a promotional tool.
Need for Better Board Reporting
Only 32 PERCENT indicate their
companies have an effective internal
audit reporting function that ensures
the board is fully informed about
the organization’s risk
Substantial Room for Improvement Key Changes Being Made to Reduce Risks
rate their risk
reward strong risk
into their corporate
have changed their
to reduce their
Need for Better Risk Profiles
Improving the ability
to aggregate and report
a comprehensive risk
profile will become