Speaking at the Risk Congress in London, Giles Triffitt, director within KPMG’s Risk Consulting practice, focused on risk efficiency and the cost of risk management. He said:
“The pressures on risk management functions and processes are at an all time high as the demand from shareholders, customers, politicians and regulators is for greater transparency, accountability and governance in the day-to-day management (and taking) of risk at all levels in the organisation.
“This can give rise to conflicting pressures: increasing profitability, improving customer service, strengthening capital position and reducing costs, while at the same time strengthening risk management and demonstrating regulatory compliance. If we turn our attention to the impact on operations or back office functions my worry is that organisations will layer controls on controls. This may, in turn, mask the true operational risks an organisation faces for many years to come.”
“I believe the way forward is for companies to develop a better understanding of the efficiency of their risk management activity which means realising the cost of control, relative to the underlying risk. Improving their understanding will go a long way to challenging both the effectiveness and efficiency of the control environment.”
Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or firstname.lastname@example.org
Notes to Editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.