Home Breadcrumb caret News Breadcrumb caret Risk Canadian, U.S. financial institutions lag in managing risk: Deloitte Canadian and U.S. financial institutions are falling behind those of other countries in managing today’s escalating risks, according to a new study by Deloitte.The study, based on interviews with executives from 162 global financial institutions, makes this conclusion based on factors including the comparatively low percentage of companies who have a chief risk officer (CRO) […] By Canadian Underwriter | March 1, 2005 | Last updated on October 2, 2024 2 min read Canadian and U.S. financial institutions are falling behind those of other countries in managing today’s escalating risks, according to a new study by Deloitte.The study, based on interviews with executives from 162 global financial institutions, makes this conclusion based on factors including the comparatively low percentage of companies who have a chief risk officer (CRO) while globally up to 81% of companies now have a CRO, compared to just 65% two years ago, only 75% of Canadian companies say they have a CRO.Canadian firms have both regulatory and business reasons for managing what is becoming an increasing risky corporate world. “The factors that increase risk in today’s environment are numerousincreasing globalization, accelerated merger and restructuring activity, security management concerns, complex lending and investment issues, shifting industry regulations and increasing public scrutiny,” says Leon Bloom, managing partner of Deloitte’s global financial services industry practice. He says failure to recognize and manage these risk will ultimately impact the bottom-line.Despite the increasing importance many financial institutions worldwide are placing on risk management, the study notes enterprise risk management (ERM) remains “an elusive goal”, with less than one-quarter of those surveyed saying they have been able to integrate risk management across business units or geographical locations. “The focus of companies with respect to ERM is on measuring economic risks including credit, market, operational, and liquidity. And while 38% of respondents say they have integrated the organizational structure required to deal with these risks, only 15-16% reported progress in integrating methodology, data, and systems,” the study notes.More on the study can be found at www.deloitte.ca. Canadian Underwriter Save Stroke 1 Print Group 8 Share LI logo