Leading banks do more than required

WHILE regulatory compliance is the most compelling reason for financial institutions to adopt better measurement and management of operational risks, the leading banks are not doing the minimum to get by, notes SAS Institute Inc global head of operational risk Ali Samad-Khan. 

Ali said leading banks recognised that proper risk management was not just a compelling compliance need; it was a compelling business need. Without a sound risk management, an organisation could find itself bankrupt overnight by the misconduct of just one person, as illustrated by the folding up of Singapore-based Barrings Ltd, previously a profitable firm, Ali said.