Bank Systems & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


12:03 PM
Connect Directly

Financial Institutions Increase Spending on ERM

Financial Institutions now spend more on risk management compared to 2010, according to a report by Deloitte.

Financial institutions are dedicating more resources towards risk management capabilities, as 65% reported an increase in spending that area, compared with 55% in 2010, according to a biennial survey on risk management by Deloitte.

Smaller firms, defined by having less then $10 billion in assets, are now working on building capabilities for new regulatory requirements as larger firms are continuing their focus due to several years of regulatory scrutiny, said Deloitte.

In terms of their current technology, less than 25% of institutions rate their own as extremely or very effective, while 40% of those polled are concerned about their risk management proficiencies.

More companies, 82%, now have or are building an enterprise risk management program, compared with 59% in 2008, according to Deloitte.

On average, 94% of company boards devote more time to risk management than 5 years ago. More chief risk offers -- 80% -- report directly to the board or CEOs. Overall, data shows 98% of company boards or board-level risk committees regularly review risk management reports, an increase compared to the 85% that did so in 2010.

Zarna Patel is a staff writer for InformationWeek's Financial Services brands, which include Bank Systems & Technology, Insurance & Technology and Wall Street & Technology. She received her B.A. in English and journalism from Rutgers University College of Arts and Sciences in ... View Full Bio

Register for Bank Systems & Technology Newsletters
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.