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

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Managing Editor, Industry & Management Research May 2013... Is the risk function is well understood?How well are managers and staff are incentivised to achieve risk objectives?. Risk pri

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Managing Editor, Industry

& Management Research

May 2013

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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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Managing Editor, Industry

& Management Research

May 2013

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