Survey: Risk Management Issues A 'Serious Concern' World Wide
A recent survey of executives at international financial institutions and insurance companies revealed “serious concerns” over implementing risk management policies and following government regulations. The survey by London-based RiskBusiness International, a financial industry consulting firm, comes in the wake of a U.S. survey showing that corporate directors rank risk management as one of their primary concerns.
The RiskBusiness survey solicited responses from companies in every major region of the world. While it focused heavily on the ability of businesses to understand and follow government regulations designed to minimize the risky conduct, fraud and other activities that can have serious economic consequences, it underscored the need for companies to be more proactive in reducing their own risks and training their employees to follow the highest professional standards.
“All evidence shows that extreme loss events arise due to risks that are not adequately managed,” RiskBusiness CEO Mike Finlay said in a recent statement.
The recent robo-signing crisis is an example of the failure to manage and limit risk, and it illustrates the consequences of not understanding or following laws, regulations and proper procedures, including those for performing notarizations.
In broad strokes, the RiskBusiness survey found that 54 percent of the respondents say that government regulations are unclear or incomplete. Most respondents also noted that government regulators provide little guidance or leadership and often lack substantial knowledge of the industries and issue they regulate.
This means that companies largely are on their own to train their employees on how to manage risk and reduce liability.