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This is the age of the risk-aware organisation. But what does risk-awareness mean to asset owners and asset managers? A new research conducted by The Economist Intelligence Unit examines how well risk structures are performing at investment institution. It looks at the quality of information the business receives from the risk function; how effectively the risk function communicates with other areas of the business; whether the risk function is well understood; how well managers and staff are incentivised to achieve risk objectives; and how these findings compare globally. Read and download the full report on < http://bit.ly/commgapsm
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Closing the communication gap
How institutional investors are buildingrisk-aware cultures
David LineManaging 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:
http://www.managementthinking.eiu.com/closing-communication-gap.html
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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 LineManaging Editor, Industry & Management Research
May 2013
