Seven out of 10 financial institutions surveyed late last year treat risk management as a board-level oversight responsibility, up from 59% in 2004, according to a Deloitte & Touche USA global risk management survey.
According to the survey, released today, 84% of institutions have a chief risk officer, up from 81% in 2004; 8% plan to establish the CRO position.
More than 60% of executives reported that their institutions used value at risk extensively for fixed income, foreign exchange, and equity, according to a statement that accompanied the survey release. Less than one-third of respondents said VaR was used extensively for a range of other instruments, including asset-backed securities, structured products and credit derivatives. according to the report.
The firm surveyed 130 chief risk officers or their equivalent at 130 financial institutions worldwide with a combined $21 trillion in assets.