MENLO PARK, Calif., July 25, 2013 /PRNewswire/ -- Five years after the 2008 financial crisis, financial institutions around the world indicate that while progress has been made in improving risk management capabilities, many are still struggling with foundational elements, according to a new international report sponsored by global consulting firm Protiviti ( www.protiviti.com). Titled Restoring Confidence: Risk management capabilities in the wake of the financial crisis ( www.protiviti.com/EIUriskresearch) and conducted by the Economist Intelligence Unit (EIU), the report surveyed 350 senior-level executives at financial institutions across the globe about the state of risk management following the financial crisis.
The results of the EIU survey show that only 20 percent of financial institutions feel they have integrated risk awareness into their corporate cultures, with just 15 percent making substantial improvements toward implementing or enhancing comprehensive, enterprise-wide risk management systems."Respondents painted an equal glass half full and half empty picture. Many institutions have made progress towards improving risk management capabilities, and recognize the linkage between strong risk management and positive customer impacts," said Cory Gunderson, managing director of Protiviti's global risk and compliance practice. "However, much effort remains to be done on such fundamental elements as integrating risk awareness into corporate cultures, improving risk aggregation, and the quality of underlying data, all of which need to occur in a time of belt-tightening and intense competition for resources." A Focus on Regulatory Change Despite the need for more integrated risk awareness throughout their organizations, financial institutions are keenly aware of risks surrounding the evolving regulatory environment. In fact, nearly half (49 percent) consider dealing with increasingly complex regulatory pressures as their top risk management priority. Interestingly, a significant number of respondents say growing scrutiny from several different regulators is more burdensome than the actual regulations and associated costs for implementation.