Financial industry struggles to align risk management with culture
Companies in the financial sector are finding it increasingly difficult to manage the risks they face and align these with their company’s culture and talent management strategies, according to Deloitte.
In a recent study, the professional services firm reported that the vast majority of firms are struggling to align their risk management strategies with areas like human resources. In fact, only 36 per cent of respondents have integrated HR risks into their overall strategic management efforts.
As well as struggling to handle challenges in human resources, companies are also finding it difficult to achieve the full results from their efforts to align different processes. Over half (57 per cent) of those surveyed reported no increase in alignment between the organisation’s risk strategy and the behavior of individuals.
Heather Stockton, Deloitte global human capital financial services industry leader, suggested the challenge now was for leaders to try and align disparate branches of their business.
“This report makes it clear that in order to be successful in today’s highly regulated environment, business, talent and risk leaders across the organisation must engage in continued, focused and open dialogue,” said Ms Stockton.
While this survey focussed specifically on the highly regulated financial sector, it still reveals the challenges that companies face in aligning strategy with people and processes across a business. Without this level of coordination, organisations are going to struggle to achieve a long-term improvement in their business conditions.
The good news to come out the survey is that companies are beginning to address these shortcomings. Four-fifths of respondents are now looking for ways to integrate talent management and risk management, while 69 per cent are aiming to align corporate culture with the requirements of their business.
As these demands continue to shape the operations of companies, the need for tools that can manage this alignment across different aspects of a business is going to be crucial.