KPMG is urging financial services firms to perform more risk functions in order to navigate the coronavirus pandemic.
According to the accountancy firm’s annual Risk and ICAAP benchmarking survey, many firms have already taken action with around 65% performing additional stress tests, with 30% of firms introducing management actions to increase levels of capital and liquidity.
Despite the impact of Covid-19, only just over a quarter of firms (28%) saw an increase in operational risk events and 15% reported an increase in size of operational risk losses.
David Yim, asset management partner at KPMG UK and author of the report, said: “There is no escaping the impact COVID-19 has had on the industry, but it’s clear risk functions have played a vital role in helping firms navigate the crisis.
“The widespread response by firms – 92% of participants took action to address the impact on their risk profile and financial resilience – demonstrates risk management in action and the value that an embedded risk framework brings during periods of stress.”