Avoiding the pitfalls of enterprise risk management

Abstract

Based on the findings of the recent Economist Intelligence Unit report into how financial institutions are reinforcing the risk management capabilities in response to the global financial crisis, the author identifies three of the gaps and weaknesses that the report highlights: complacency in institutions' internal culture, lack of joined-up risk management across business units and inadequate methods and levels of data management and assessment. The paper considers each of these issues in turn, as well as how they can best be addressed.