Cyber risk is now a major threat to businesses. Companies increasingly face new exposures, including first-and third-party damage, business interruption and regulatory consequences. With the operating environment for many industries changing dramatically, as they become more digitally-connected, this report examines cyber risk trends and emerging perils around the globe. It also identifies future mitigation strategies, including the role of insurance.
There is much hand-wringing on the question of risk culture. The failures of the recent past associated with bid-rigging, product mis-selling, rogue trading and the like are viewed by governments, regulators and the media as evidence of an increasing prevalence of unprincipled banking practices and poorly educated and managed bank employees. This negative perception of the culture within banks and declining standards of conduct is of great concern to regulators, senior bankers and their stakeholders.
Risk culture is real and it’s measureable. We may not be able to give it a precise numeric score, but we can build programs and track the right information to give some insight into its strength and effectiveness. We need to ask the right questions that benchmark our progress, from where we were yesterday to where we are today. Improving risk culture is not about eliminating risks but rather having the information to take the right risks to maximize our performance.
This article presents a building-block approach to implementing the COSO ERM framework that makes it usable to organizations regardless of their size or previous experience in risk management. Our building-block process enables organizations to evolve ERM as they establish a risk culture and offers better opportunities for efficient and effective allocation of resources for ERM activities.
Purpose: The purpose of this paper is to explore the definitions surrounding reputational risk and study the ways leading banks of European Union treat reputational risk management.
Design and Methodology: The paper uses a sample of leading banks of European Union to study the disclosure of reputational risk using qualitative and quantitative content analysis. The paper then uses the case study approach to explore reputational risk management at the organisation level.
Findings: The key finding of this paper is that disclosures of reputational risk is not standard in the industry.
The Cadbury Report, titled Financial Aspects of Corporate Governance, is a report issued by "The Committee on the Financial Aspects of Corporate Governance" chaired by Adrian Cadbury that sets out recommendations on the arrangement of company boards and accounting systems to mitigate corporate governance risks and failures. The report was published in draft version in May 1992.
We study the effect of adoption of enterprise risk management (ERM) principles on firms’ long-term performance by examining how financial, asset and market characteristics change around the time of ERM adoption. Using a sample of 106 firms that announce the hiring of a Chief Risk Officer (an event frequently accompanied by adoption of Enterprise Risk Management) we find that some firms adopting ERM experience a reduction in earnings volatility. In general however, we find little impact from ERM adoption on a wide range of firm variables.