The European Risk Management Benchmarking Survey 2010
Key findings include: • The risk management environment is evolving towards more regulations and standards, which should play a fundamental role and significantly impact risk management practices in the coming years. • Risk management is now on the agenda for top management, the board and shareholders which clearly support and sponsor the function in its traditional objectives (compliance, risk mitigation) as well as in its new ambitions (better integration in decision making process, regular reporting on risk management topics). However, even if risk management now appears to be better known and valued at top management level, its role (limited or expanded mandate), as well as its level of (increasing) coordination with other risk functions, must be clarified and supported by top management. • A trend towards more consistent risk practices and tools is appearing through a broader scope of intervention and convergence of risks practices and tools (the risk mapping exercise has become an undisputable practice). However, in spite of this “consistency trend”, the risk management approach remains more qualitative (assessment workshops) than quantitative (strong analytic tools) among most companies. • A more mature internal communication on risk is emerging through the definition of risk management policies or charters within most of the European companies and a deeper involvement in board decision making process. However, unlike internal communication, practices in external communications vary widely, especially in unlisted companies. • Individual companies’ complexity has a clear impact on the maturity of risk management practices, especially when it comes to risk governance and risk communication topics, and that companies’ risk appetite, relies more on the risk category than on the significance of the risk assessment. Consequently, companies mainly adopt risk-taking strategies for external risks and tend to be totally averse to risks regarding regulatory and safety issues. Read the survey report (PDF).
•Date: 14th Dec 2010 • Region: W.Europe/World •Type: Article •Topic: Op risk |
