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Closing the communication gap

How institutional investors are buildingrisk-aware cultures

David LineManaging Editor, Industry & Management Research

May 2013

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This presentation contains select findings only from the Closing the Communication Gap report.

To view the full report please visit:

http://www.managementthinking.eiu.com/closing-communication-gap.html

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Core questions

What quality of information does the business receive from the risk function?

How effectively does the risk function communicate with other areas of the business?

Is the risk function is well understood?

How well are managers and staff are incentivised to achieve risk objectives?

How do these issues compare globally?

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Research methodology

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Survey demographics

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Survey demographics

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Key findings

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1. Risk awareness has changed dramatically

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2. Reputation is as big a concern as market risk

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3. Risk priorities do not always align

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3. Risk priorities do not always align

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4. Internal risk information is not always good

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5. Confusion over the role of the risk function

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6. Europe has the biggest communication gap

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…and pays for it

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7. Risk committees provide the bedrock for more cohesive risk frameworks

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8. CROs are increasingly on executive boards…

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9. But incentives to meet risk targets are sporadic

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10. Paying for risk objectives makes risk management pay…

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11. …as does better communication

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12. Whistleblowers unite

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Closing the communication gap

Thank you

David LineManaging Editor, Industry & Management Research

May 2013