Banks have markedly increased their investment and commitment to risk management over the past 12 months but there remains a long way to go to embed proper risk cultures in most organisations, according to research. The survey on risk management also shows that operational risk remains the Cinderella of the risk disciplines, despite the fact that operational risk failings were key causes of the financial crisis and remain in the headlines. This year, the third year that Ernst & Young and the Institute of International Finance (IIF) have produced this survey, shows a "sea change" in terms of the structure of risk management, said Patricia Jackson, head of financial regulatory advice at the consultancy.
For example, most respondents have now instituted board risk committees, boards are now spending more time on risk issues, and many have added board members with risk experience in their background. As well, chief risk officers have seen their role elevated, with more than 80 percent reporting
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