IIF: Banks make slow progress with risk management systems

The Institute of International Finance delivered two reports last month that examine the banking industry’s faltering efforts to address the failures that led to the near catastrophe of 2008.

Worryingly, the reports suggest that most international banks are still lagging in their efforts to comply with the best-practice recommendations promulgated by the IIF in 2008 on improving risk IT and operations. It may be another four years before the situation improves and, in the meantime, few banks are capable of properly framing a risk appetite as an integral part of planning what business they should be in and what returns they should aim for.