Risk Management

Risk management first emerged in the 1960s encompassing risk reduction through safety, quality control and hazard education, alternative risk financing and the purchase of traditional insurance products.
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More recently, derivative dealers have promoted “risk management” as the use of derivatives to hedge or customize market-risk exposures. For this reason, derivative instruments are sometimes called “risk management products.”

The new “risk management” that evolved during the 1990s is different from either of the earlier forms. Risk management is now more than measuring risks. BASEL II and Solvency II have embedded principles which now require financial institutions to take responsibility from the very top when it comes to the management of risks. Banks now need the maturity of governance and culture to be able to take the hard decisions to exit markets or reduce exposure. The failure of firms to embed adequate risk management now carries a financial penalty in the form of increased regulatory capital requirement and increasing pressure from financial markets as a result of improved risk reporting.

Future Banking guides executives through the latest thinking on risk management and points them towards a number of new and innovative solutions.

Thought Leaders
	Issue 2009-1		Risk management: the new fraud squad michael Peer, KPMG Click here to read
	Issue 2008-2		Chart a Course through the Crunch Bob Landry, CGI Click here to read
	Issue 2006		Operational Risk Management – managing the landscape Parm Sangha, Cisco Systems Click here to read
			A Single View of Risk Simon Doherty, Teradata Click here to read more