Regulatory Risk Tops Threat List

Risk managers questioned for a new Economist Intelligence Unit survey point to regulatory risk as the most significant threat to their business, ahead of country risk, market and credit risk, IT and people risks, or terrorism and natural disasters. The report’s publication is timely given the widespread calls for increased global regulatory oversight in response to the financial crisis. While respondents to the survey  support the concept of regulation, they voiced strong concerns about the quantity and complexity of their compliance obligations, as well as the lack of regulatory harmonization between different jurisdictions. The findings form part of From Burden to Benefit: Making the Most of Regulatory Risk Management, a new Economist Intelligence Unit survey and report sponsored by ACE, KPMG, SAP and Towers Perrin. According to the results, audit and reporting regulations cause the biggest headaches, but other areas are also causing concern for many companies. In particular, respondents point to workforce and environmental legislation as areas that consume large amounts of resources and management time. Research for the report is based on an online survey of 320 global executives with responsibility for risk.

Leave a Reply

Your email address will not be published. Required fields are marked *