Philadelphia, PA (March 3, 2016) —
The Risk Management Association has completed a survey which
addressed RMA members’ interest in ascertaining the range of practice regarding
member institutions with respect to taxonomy, and drew responses from 22
financial institutions covering a wide range of asset sizes and types. The survey
addressed whether institutions combine or separate market risk and interest
rate risk, strategic risk and business risk, legal risk and compliance risk,
capital risk and financial reporting risk, and operational risk and technology
risk.
"Managing
taxonomy risks has become important in recent years, and this survey will help
participants see the extent to which RMA member institutions separate or
combine various risks in their respective institutions," said Sylwia
Czajkowska, Associate Director, Operational Risk at RMA.
Among other findings, it was learned that:
- Approximately
54% of institutions combine strategic and business risks, while 35%
separate them.
- There is an
even split of responses for treatment of operational risk and technology
risk. Half of participants combine operational risk and technology risk,
while the other half separate them.
- With regard
to cybersecurity in risk taxonomy, 68.4% of institutions include it as a
Level 2 risk under operational risk management, while 26% include it as a
Level 1 risk under enterprise risk management.
For
additional information on the survey, please visit www.rmahq.org/2016-taxonomy-survey.
About RMA
Founded in
1914, The Risk Management Association is a not-for-profit, member-driven
professional association whose sole purpose is to advance the use of sound risk
management principles in the financial services industry. RMA promotes an
enterprise approach to risk management that focuses on credit risk, market risk
and operational risk. Headquartered in Philadelphia, Pennsylvania, RMA has
2,500 institutional members that include banks of all sizes as well as nonbank
financial institutions. They are represented in the Association by 18,000
individuals located throughout North America, Europe, Australia and
Asia/Pacific.
Media Contacts
Stephen Krasowski, skrasowski@rmahq.org,
215-446-4095
Frank Devlin, fdevlin@rmahq.org,
215-446-4137