This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New Research From The Economist Intelligence Unit Finds Financial Institutions' Improved Risk Management, Yet Much Work Remains To Be Done

"There is no question that the increased scrutiny by the regulators can be challenging, but risk officers are also starting to understand that some of this regulatory pressure, if it is well thought out, can be quite beneficial to their organizations," said Tim Long, a Protiviti managing director and the firm's global regulatory risk management practice leader. "In fact, nearly 60 percent of respondents admitted that tighter regulatory controls provide stronger assurances to customers, which in turn creates a distinct competitive advantage."

Ongoing Challenges and Obstacles

When asked what the obstacles are to dealing with key risks, 42 percent of the respondents said not having enough people and time; 24 percent indicated a lack of appropriate skills, and roughly 25 percent pointed to inadequate funding.

"As enforcement expands and intensifies without a commensurate increase in resources, the devil is in the details," said Carolyn Whelan, editor at the Economist Intelligence Unit. "Progress has been made, but the research suggests much more can be done to foster a strong risk management culture across the entire enterprise."

Regional Disparities

According to the survey, perception of risk varies considerably by global region, with North American businesses attributing less importance to nearly every category of risk compared to their peer organizations.

For example, when asked to rank the importance of global economic instability, only one-third (33 percent) of North American respondents listed it as a top-three risk compared to nearly half in both Europe (48 percent) and the Asia-Pacific region (47 percent). Additionally, North American institutions are about half as likely (20 percent) as their European (37 percent) and Asian (45 percent) counterparts to consider reputational risk a top priority.

About the Survey

The Protiviti-sponsored survey Restoring Confidence: Risk management capabilities in the wake of the financial crisis was conducted by the Economist Intelligence Unit in March 2013. To assess the progress of, opportunities for, and shortcomings of financial institutions in meeting new requirements, and to determine areas demanding more focus, the EIU surveyed 350 senior-level executives at financial institutions across the Unites States, Europe, the Asia-Pacific, the Middle East, and Africa.

Respondents surveyed included C-level executives and board members (46 percent) and senior vice presidents, vice presidents and directors (21 percent). Of these, about half (53 percent) work in banking, 23 percent in insurance, and the rest in capital markets and private investment funds.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.13 -0.52%
FB $118.07 0.01%
GOOG $698.33 0.38%
TSLA $212.20 -4.70%
YHOO $37.08 3.00%


Chart of I:DJI
DOW 17,700.50 +49.24 0.28%
S&P 500 2,055.36 +4.24 0.21%
NASDAQ 4,731.3310 +5.6920 0.12%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs