One-third of U.S. risk management professionals surveyed by industry association PRMIA have seen their IT budgets increased and plan to install new software to support the forthcoming Basel II capital requirements.
Over 2,000 U.S. PRMIA members were asked for their thoughts on various standards in the risk management profession. The results showed a pre-occupation with Basel II, with just under half the sample feeling that the current regulatory environment is beneficial to the profession. One in five believe that the risk management department is now being used for a competitive advantage, against a quarter who feel that they are operating a defensive strategy.
Respondents report that in 69% of the cases, budgets and sophistication levels for dealing with credit risk are higher than two years ago, and over 25% report that they are substantially higher. Only one per cent report budgets and sophistication levels substantially lower than two years ago.