Almost three-quarters of financial services companies have adopted enterprise risk management programs, while another 19% are either planning to develop or are in the process of implementing ERM programs of their own, according to Deloitte’s Global Risk Management Survey.
Further underscoring the importance of risk management in these organizations, 92% have a chief risk officer or its equivalent position on staff and, at 90% of the surveyed institutions, that individual meets regularly with the board.
Over the next two years, the highest risk management priorities at these organizations include enhancing risk information systems and technology infrastructure; boosting collaboration between business units and the risk management function; enhancing the quality, availability and timeliness of data; attracting and retaining skilled risk management professionals; and establishing and embedding risk culture across the enterprise.
To help accomplish these objectives, 44% of respondents expect their institution’s annual spending on risk management will increase by 10% or more over the next two years, with 13% expecting an increase of more than 25%.