Financial institutions are dedicating more resources towards risk management capabilities, as 65% reported an increase in spending that area, compared with 55% in 2010, according to a biennial survey on risk management by Deloitte.
Smaller firms, defined by having less then $10 billion in assets, are now working on building capabilities for new regulatory requirements as larger firms are continuing their focus due to several years of regulatory scrutiny, said Deloitte.
In terms of their current technology, less than 25% of institutions rate their own as extremely or very effective, while 40% of those polled are concerned about their risk management proficiencies.
More companies, 82%, now have or are building an enterprise risk management program, compared with 59% in 2008, according to Deloitte.
On average, 94% of company boards devote more time to risk management than 5 years ago. More chief risk offers -- 80% -- report directly to the board or CEOs. Overall, data shows 98% of company boards or board-level risk committees regularly review risk management reports, an increase compared to the 85% that did so in 2010.