Calculated Risk : How Banks Make Sure They Stay off the Barings Path
- Topics:
- Enterprise Risk Management
- Tags:
- Bank,
- Finance,
- Finance Industry,
- Financial Planning,
- Financial Services,
- Management,
- Risk Management,
- Security,
- Strategy
FREE Registration is required
Overview: The finance industry has increased its awareness of risk management practices as a result of high profile failures abroad, advances in technology and developments in the regulatory process. There has been an increased emphasis on the quality of internal management systems as a key defence against large trading losses such as those experienced at Barings. Advances in technology have enabled institutions to develop more sophisticated systems for monitoring and controlling risk. Regulatory developments have contributed by recognising the more rigorous risk management methodology contained in banks’ internal models for the purpose of setting market risk capital standards. This article explains the risk management methodologies and analyses at a practical level the issues involved in risk management across an organisation. It highlights the increasing emphasis on risk management systems, methodologies and practices by institutions and regulators.The paper looks at the significance of the control function in the risk management framework and outlines a number of trends including the growing importance of the risk control unit.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: WORD | Date: Jan 2003 | Pages: 7
