RMA Surveys Financial Institutions on How They Combine-Separate Risks Associated with Taxonomy

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