Insurers falling short in risk management – Deloitte

Insurers, banks and asset managers have shown slow progress in tying executive pay to risk and improving their data to spot emerging dangers, according to a study by Deloitte.

The survey of 86 financial institutions revealed that little had changed since a similar study two years ago. Only 55% of companies included risk management in performance goals and compensation for senior managers.

Risk management was even less of a priority for staff and middle managers, with only a third of firms reporting that this was factored into compensation decisions.

The poor progress comes despite substantial increases in risk management spending in the past year, as reported by the Financial Times.