TaiClosing the communication gap how institutional investors are building risk aware cultures

Closing the
communication gap
How institutional investors
are building
risk-aware cultures

David Line
Managing Editor, Industry
& Management Research
May 2013

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This presentation contains select findings only from the Closing
the Communication Gap report.

To view the full report please visit:
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Core questions

What quality of information does the business receive from the
risk function?
How effectively does the risk function communicate with other
areas of the business?
Is the risk function is well understood?
How well are managers and staff are incentivised to achieve risk
objectives?

How do these issues compare globally?

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Research methodology

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Survey demographics

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Survey demographics

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Key findings

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1. Risk awareness has changed dramatically

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2. Reputation is as big a concern as market risk

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3. Risk priorities do not always align

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3. Risk priorities do not always align

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4. Internal risk information is not always good

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5. Confusion over the role of the risk function

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6. Europe has the biggest communication gap

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…and pays for it

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7. Risk committees provide the bedrock for more
cohesive risk frameworks

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8. CROs are increasingly on executive boards…

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9. But incentives to meet risk targets are sporadic

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10. Paying for risk objectives makes risk management pay…

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11. …as does better communication

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12. Whistleblowers unite

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Closing the
communication gap
Thank you

David Line
Managing Editor, Industry
& Management Research
May 2013

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