A survey by PricewaterhouseCoopers has claimed that the insurance industry must strive for improvements in risk management processes.
Despite financial institutions moving towards a more holistic approach to risk management, the survey called for further improvements.
The survey suggested financial institutions embrace these attributes but it called on organisations to improve further.
Hans-Kristian Bryn of PricewaterhouseCoopers said: "Quantification of risk has come a long way over the past decade but our survey indicates that drawing a complete picture of risk appetite and exposure is clearly a daunting task even for pioneering institutions.
"With the forthcoming implementation of the Basel II Accord institutions need to tighten up their risk management systems."
