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Deloitte Study Show Risk Management Becoming a Priority for Firms

A Deloitte survey released in July 2013, entitled Global Risk Management Survey, explores the state of risk management in the broader financial services industry. 

The survey found that financial services firms increasingly have a chief risk officer position, with 89% of the institutions reporting use of a CRO. The CRO has become a senior-level role, reporting to either the CEO or the board of directors in most institutions. The study found that many CROs have a strategic role assisting in developing the risk statement of the company, participate in executive sessions with the board of directors, and provide input into developing the business strategy.

The survey also found that for most of the institutions responding to the study, the board of directors reviews and approves the risk management policy and/or the enterprise risk management (ERM) framework and the risk appetite statement. ERM programs are holistic programs that are designed to “connect the dots” of risk within the whole of the company’s operational branches. Sixty-two percent of the participating companies reported having an ERM program, up from 52 percent in 2010. Another 21 percent said they are currently implementing one.

Of the 86 financial institutions involved in the survey, more than half plan to increase risk-management spending over the next few years. Additionally, almost 50 percent of these firms had added personnel dedicated to risk management during the year leading up to the survey.