Singapore

Details

  • Service: Advisory
  • Industry: Financial Services
  • Type: Case study
  • Date: 6/25/2014

Finance/risk alignment – Breaking down the silos 

Finance/risk alignment – Breaking down the silos

The 2008 financial crisis has been attributed to many factors, but clearly a widespread breakdown in balanced assessments of risk and reward bears some of the blame. Since the crisis, rising pressure from stakeholders and regulators has challenged companies to find new ways to balance risk and reward on a more sustainable basis.

To meet this challenge, a good starting point is to align the activities of finance and risk – two important support functions charged with safeguarding this balance.

However, a combination of cultural, organizational, linguistic and systemic barriers has traditionally divided these functions. In KPMG’s 2013 survey, only a minority of finance executives said their finance and management functions and processes were fully integrated.

Companies that can break down these silos can win confidence that their business decisions will be more balanced over both the short and long terms, giving them an edge over their competitors.

Download Finance/risk alignment – Breaking down the silos (PDF, 525KB) article