Our 2016 benchmarking survey, ‘Continuing the journey’, reveals that while investment firms’ risk management and ICAAP practices have become more sophisticated, there are still further opportunities to improve.
Almost 50 percent of investment firms visited by the Financial Conduct Authority (FCA) over the last year were advised that risk governance and culture should be their key concern. Yet as our report shows, approaches to risk management differ widely across the industry and there is a lack of engagement at executive level.
Last year, our study revealed how investment firms could benefit from getting their Internal Capital Adequacy Assessment Process (ICAAP) submissions ‘right from the start’. This time, we have delved deeper, not only looking at a comparable number of firms and their ICAAPs, but also examining their underlying risk processes – how they identify, assess, monitor and report risk.
This year we worked with ORIC International, the world’s leading provider of operational risk data, to provide deeper insight into current risk management practice among investment firms. ORIC International provides benchmarks, best practice insights, undertakes leading-edge research for operational risk and provides a forum for members to exchange ideas and experiences.