Findings from a report by the Economist Intelligence Unit, undertaken on behalf of SAS, revealed that the lack of details surrounding forthcoming legislation and compliance could hamper the risk management strategy of financial service providers.
Although almost two-thirds of respondents have a clear strategy towards risk, many respondents believe senior figures lack expertise and knowledge, the study showed.
A silo-based approach towards risk and ineffective data collection processes are both areas which the survey found impeded an effective risk management strategy from being implemented.
David Rogers, SAS Global product marketing manager for risk, said: âFinancial institutions need to respond to evolving opportunities and challenges in risk management and effect change that impact both staff and systems across group and business lines.
âProgress requires an integrated risk data infrastructure with timely access, the ability to measure exposure and risk across all risk types and books of business, and incentive distribution for consistent optimisation of risk-adjusted returns throughout the organisation.â
Further findings from the study showed that despite the issues, confidence levels among respondents had risen.
Up to three-quarters of professionals questioned were optimistic about revenue growth while 68 per cent were upbeat about profitability.
The survey, which was conducted in February of this year, questioned 346 risk management executives.
By Jim Ottewill