Is your Risk Assessment Approach Too Simplistic?

We just spotted this article in Coprporate Risk & Insurance’s risk magazine:


Merrill Lynch criticised by regulator for ‘simplistic’ risk management

The Bank of America’s UK Merrill Lynch business has been criticised by regulators for weak risk management. The Prudential Regulation Authority says the firm needs to be “more comprehensive” in its evaluation of the risk posed by business partners and calls its current risk management practices too “simplistic”. The criticism only refers to Merrill Lynch International, based in London. The unit is responsible for around 10 per cent of Bank of America’s revenues.


Companies not ranking corruption risk highly enough

Companies are not doing enough to combat the risk of corruption in their organisations. That’s the message in a new report from risk managementfirm Control Risks. Firms are either not investing enough in compliance teams and/or are underestimating the risk. Regulators throughout the world are more vigilant with anti-corruption measures and financial penalties are frequently hitting new highs. Many emerging countries, where corruption has not always been handled robustly are now doing so. The Control Risks report found that most companies are optimistic that they will not face an investigation in the next two years and most (87.9 per cent) have policies banning the taking of bribes for contracts.


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