Nearly 80% of companies have not fully implemented a comprehensive enterprise risk management (ERM) strategy or don't have a strategy at all, according to a recent survey sponsored by SAS Institute Inc.
That's surprising since 70% of the 316 financial services executives polled blame poor risk management for the crippling credit crisis. While 71% say they have adopted but not put in place an overall strategy, 8% have no policy. That leaves just 18% with a fully implemented, comprehensive ERM plan.
The good news is that about 60% said the credit crisis has prompted them to more closely scrutinize their ERM practices.
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"This survey is evidence that the risk management needs of financial institutions are evolving to go beyond regulatory risk and must break down traditional risk silos to drive toward a firm-wide risk view," Alastair Sim, SAS global director for risk, says.
Asked to choose the three biggest challenges to successful implementation from a list of choices, about half the respondents chose: creating an ERM culture; quantifying risks; and timely access to relevant data. (For the most significant benefits of comprehensive strategies, see graph on this page.)
Why the push to review strategy? Seventy-two percent called regulators a driving force, followed by senior management (62%) and investors (42%).
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