The world's financial markets should place a greater emphasis on risk management practices in the wake of the global economic crisis, a new report has claimed.
A study from the International Actuarial Association (IAA) stated: "The recent developments in global financial markets have raised serious questions about the management and oversight of the financial services industries."
The organisation stated that actuarial methods can be used in order to measure and manage risk more effectively, potentially mitigating the impact of irrational behaviour and reducing uncertainties.
A series of potential reforms of the financial sector have been proposed by the IAA, which believes that "many lessons" are being learned from the global economic downturn.
The association has highlighted new tools and methodologies being developed in the enterprise risk management field, the importance of strengthening transparency and accountability, improving regulation and reinforcing international co-operation in financial markets.
In other news, forensic accountants at PricewaterhouseCoopers have predicted that employee fraud and theft could rise in the current economic climate, making it more important for firms to protect themselves against risks.
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