The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

IIF: Banks make slow progress with risk management systems

IIF report suggests it will be years before many banks have adequate risk IT; Only a few have a clear framework for assessing risk appetite

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.

McKinsey compiled one of the reports, Risk IT and operations: Strengthening capabilities, for the IIF, based on an online questionnaire filled out by 39 firms and in-depth interviews with 10. McKinsey claims it is the most thorough and comprehensive survey on the topic.

"Strengthening risk IT and ops is an important pre-condition for better risk management," points out Philipp Härle, director at McKinsey. He adds: "Most firms believe gaps in best practice still exist in the flexibility of management information systems, in end-to-end data standardization and integrity and in real-time data capabilities."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree