The banking industry must make "fundamental changes" to its risk frameworks to avoid a repeat of the financial disasters of last year, a study from Big 4 firm KPMG has warned.
According to the financial services company, 90 per cent of banking executives have carried out or plan to carry out a review of the way they manage risk.
However, only 42 per cent have made or intend to make changes to their risk processes.
Nigel Harman of KPMG Advisory, said that "a lack of discipline" among banks over risk management was a significant factor in the credit crunch.
He added: "However, they seem less forthright in their views on what sort of action this necessitates. What we have is a fairly non-committal response, with just over four out of ten respondents committing their organisation to the sort of fundamental changes which a crisis of this magnitude merits."
Mr Harman explained that communication between the risk function and the rest of the businesses needed to be improved to help prevent similar catastrophes.
In related news, the US Securities and Exchange Commission (SEC) has said that fair value "did not play a meaningful role" in the bank collapses of last year.
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