This week brings a trio of interesting articles on risk management to share.
First, the Association for Financial Professionals (AFP) and the Global Risk Center of the Oliver Wyman Group released results of the 2013 AFP Risk Management Survey, “which asked CFOs, corporate treasurers and other senior finance executives how their organizations are addressing risks through a risk-adjusted decision framework that includes forecasting, risk culture, organizational structure, metrics and other solutions,” according to this report.
More than half of those surveyed report that it is more difficult to forecast risk today than it was five years ago and that the risks that are hardest to forecast are having the greatest impact on earnings.
“From subtle changes in consumer tastes to sweeping changes made by regulators, future risks can be difficult to manage proactively,” said Jim Kaitz, AFP’s president and CEO. “That’s why a risk mindset must permeate the entire organization.”
Next, Computerworld reports that “62 percent of Asia Pacific banks are expecting to increase their technology spending on the area of risk management, according to an IDC Financial Insights survey.”
The report, Business Strategy: Asia/Pacific CRO Survey – Risk Management in the “New Normal” Environment, polled 40 banking chief risk officers (CROs) and their deputies from across 11 Asia Pacific nations. According to the study, more than a third of risk professionals are projecting at least a seven percent increment in spending in 2013. To read the article, click here.
Lastly, this piece on the rapid pace of change and risk management is well worth a read, especially if you are intrigued by this question: “Specifically, does a cyclical risk management process make sense in light of the current pace of change?”