North American Banks Lead in Formal Enterprise Risk Definition
NEW YORK - A new survey reveals North American banks are considerably more likely to formally define enterprise risk management (ERM) practices than their European counterparts. According to Risk.net’s Enterprise Risk Benchmarking survey, two-thirds of North American banks have established a formal definition of ERM, compared to just 30% of banks in Europe.
Banks in other regions - Africa, Asia-Pacific, Latin America, and the Middle East – report formal ERM definitions at a rate of 50%. The findings highlight a growing emphasis on structured risk management approaches within the North American banking sector.
The Risk.net survey gathered responses from a diverse range of financial institutions, offering a snapshot of current ERM adoption globally.formalizing ERM definitions is considered a crucial step towards proactive risk identification, assessment, and mitigation, ultimately bolstering financial stability and regulatory compliance.