by Mark Flinders and Mario Morkos
In the wake of the financial crisis, the cost of complying with new regulations has risen dramatically for financial services organisations. Delivering regulatory change is an expensive business – so much so that, according to the Confederation of British Industry, banks now say that reducing regulatory costs should be the top priority for the UK government[1]. The rise in regulatory costs is tied, in part, to the expansion of the risk management function. Increasingly, however, the function is under the same pressure as other parts of the organisation to reduce costs. Shareholders concerned about falling margins want to see all functions – including the risk management function – play their part in delivering costs savings.
