Once viewed as a burdensome regulatory obligation, risk management is increasingly seen as a strategic core competency, according to a global survey of 200 risk managers carried out by SunGard and the Professional Risk Managers’ International Association (PRMIA).
Key findings revealed:
- Stress testing capabilities were ranked as being lower priority than collateral consolidation and asset and exposure valuation. The survey called those results “particularly surprising in light of the impending European Central Bank comprehensive assessment” and speculated that “this could suggest … banks are beginning to focus more on longer term risk management capabilities,” regulatory concerns notwithstanding.
- Over 96 percent of respondents said combined risk and collateral management capabilities were important, a result the survey said highlights “how firms are increasingly taking a longer term view of risk management rather than a short-term, tick the box exercise.”
- Other priorities among risk managers surveyed included centralization of customer information to improve accuracy, improved monitoring of counterparty risk, enhanced reliability of risk data and better single borrow exposure and monitoring internal limits.
“While it is surprising that regulatory requirements such as stress testing rank as a lower than expected priority, this also suggests that the practice of risk management is evolving to become more strategic and operational,” says Sven Ludwig, regional director of PRMIA and senior vice president, risk management and analytics at SunGard. “This is particularly evident when looking at today’s collateral and exposure management priorities.”
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