News Article Published:
Wednesday, 01 July 2009
Category:
Professional Services
Asset management risk managers value their reputations as one of their most important assets, a new study has claimed. Professional services research from Ernst & Young noted that reputational risk is the number one concern for chief risk officers (CROs) in UK asset management firms.
In addition, the managers have indicated that they need to be given more access and information about their businesses in order to be more accurate when advising. The economic downturn was cited as a key reason for the lack of involvement of CROs in business development.
Just 30 per cent of CROs believe that the process for pricing new risks is satisfactory, with 48 per cent claiming that the procedure is not up to scratch.
Dr Anthony Kirby, director in the Ernst & Young regulatory and risk management practice, said that companies are "facing increasingly severe risks as the recession continues".
"Failing to get CROs involved in new product development or the strategic direction process could result further down the line in disgruntled clients and investors or worse. CROs play a hugely important element in fine-tuning products. Their role is really business critical in the current environment," he commented.
<< back to latest industry news