Who Is Really interested In Risk Management?
Source: City University of London (Cass)
The global credit crisis has once again focused attention on risk management practices in the banking industry. The discipline of risk management had been developing quite rapidly in both the banking and corporate sectors prior to the credit crisis and professional standards had been broadly agreed. However, risk management practice was overrun with intense mathematical modelling and everything began to be defined in terms of risk distributions and risk limits based upon the model output. So where did it go so badly wrong and what can we learn from this for the future? Was it really just old fashioned model risk?