PRMIA and Capital Market Risk Advisors have released the findings of their Risk Governance Survey, which aims to benchmark risk governance practices of banks, insurance companies, asset managers, hedge funds and institutional investors.

121 participants from 26 countries participated in the survey.

Across all respondent types, there is wide agreement on the need for a chief risk officer, but influence on strategy vs. control varies:

* 70 percent of respondents have a CRO, and 15 percent have someone with a different title, but an equivalent function.

* 25 percent of CROs have a control role only.

The need for the CRO to report at a very senior level and be independent of the business is well-established:

* 70 percent of CRO’s report to the CEO, 14 percent to the CFO, and 16 percent to the chairman of the board.

The importance of the CRO having regular and unfettered access to the Board is still evolving:

* 44 percent of respondents with a board and a CRO have executive/in-camera sessions at most meetings, while 13 percent have executive/in-camera sessions only once a year, and 20 percent never have such sessions.

Other findings:

* 37 percent of overall respondents have a written ‘Risk Appetite Statement,’ and 23 percent are considering adopting one.

* 60 percent of boards approve risk policies.

www.prmia.org
www.cmra.com

•Date: 30th July 2009• Region: World •Type: Article •Topic: Operational risk
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