RT Journal Article
SR Electronic
T1 Risk Management in Banking: <em>Beyond the Credit Crisis</em>
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 92
OP 103
DO 10.3905/JSF.2009.15.1.092
VO 15
IS 1
A1 Jörg Hashagen
A1 Nigel Harman
A1 Michael Conover
A1 Jitendra Sharma
YR 2009
UL https://pm-research.com/content/15/1/92.abstract
AB The credit crisis has forced banks to take a critical look at how they manage risk and has exposed some significant weaknesses in risk management across the financial services industry. On first examination, the current predicament appears to stem from the pursuit of revenue growth in a world of easy credit. The reality of course is more complex, and a number of themes emerge from a recent survey conducted by KPMG and the Economist Intelligence Unit: weaknesses in risk culture and governance, gaps in risk expertise at the non-executive board level, lack of influence of the risk function, lack of responsibility and accountability on the part of those on the front line, a compensation culture too oriented toward year-on-year profit increases, and business models that were overly reliant on ample market liquidity.TOPICS: Credit risk management, financial crises and financial market history