North American โคBanks Lead in Formal Enterprise โRisk Definition
NEW YORK โ-โฃ Aโค new survey reveals North โAmerican banks are considerably more likely to formally defineโข enterprise riskโ managementโ (ERM)โ practices than their European counterparts. According to Risk.net’s Enterprise Risk Benchmarking survey, two-thirdsโ of North โขAmerican banks have established a formal definition of ERM, compared to just 30% ofโข banks in Europe.
Banks in other regions -โ Africa, Asia-Pacific, Latin America, and theโฃ Middle East – report formal ERM definitions at a rateโ of 50%. โThe โขfindings highlight a growing emphasis on structured โrisk managementโฃ approaches within the โขNorth American banking sector.
The โ Risk.net survey gathered responses โคfrom a diverse โขrangeโ of financial institutions,โค offering a snapshot of currentโข ERM adoption โglobally.formalizing ERM definitions isโค considered a crucial step towards โคproactive โrisk identification, assessment, and mitigation, ultimately bolstering financialโ stability and regulatory compliance.