Banks have the most robust enterprise risk management (ERM) practices of financial services organisations, followed by general insurers, according to a survey of delegates at the Actuaries Institute ERM seminar in Sydney last week.

About 38% of those surveyed say retail banks have the strongest ERM, followed by general insurers at 22% and life insurers at 19%.

Superannuation funds and investment banks need the most improvement in managing risk, respondents say.

The institute defines ERM as the process by which organisations assess, control, exploit, finance and monitor risks in their strategies to increase shareholder value.

Although 40% of those surveyed believe Australia’s financial services industry is performing above average by international standards, only 6% see the nation as a leader in the field.

Actuaries Institute CEO Melinda Howes says more work is needed to extend the reach and depth of ERM.

“Australian financial services organisations need to ensure ERM practices are part of their company DNA,” she said.