TCR Engineering Services
The current financial crisis has been attributed to multiple causes, the most critical one being laxity in adherence to risk management principles, processes, and practices. Some of the sophisticated risk management practices and framework in banks were more on paper than in practice. The Basel II Capital Accord lays emphasis on use testing to ensure that all the sophisticated internal models and systems are embedded into Business As Usual (BAU) processes. It is in this context that Pillar 2 has assumed increased significance and relevance. Through Pillar 2 implementation, banks have a strategic opportunity to go beyond the mirage of compliance to establish a robust risk, capital, and performance management setup.