Risk management still not properly in place, says Deloitte
29 Jun 09
Global financial institutions have critical gaps in their risk management practices several months into the economic crisis, according to a survey by Deloitte
The Study says gaps include widespread failures to conduct independent checks on financial models and to perform regular stress tests for risky structured products.
Less than half of the financial institutions surveyed had made risk management responsibilities an integral part of performance goals and compensation decisions for senior management.
Edward Hida, head of the global financial services industry practice at Deloitte, said: “The past two years have demonstrated the need for enhanced risk management capabilities at financial institutions, and the challenging times that undoubtedly lie ahead make it an even greater priority.”