Regulators need more information to be effective

Risk managers should have a direct reporting line to regulators, says Harvey Toor, chief risk officer at sovereign wealth fund Abu Dhabi Investment Council. "Regulators need to be able to ask dynamic questions and make dynamic assessments. They are hindered by the convoluted way in which information reaches them."

He says most reporting received by regulators is usually massaged through multiple levels of an organisation, removing much of interest and value. What regulators see in the end is bland information not particularly useful for understanding risks that could affect either the individual firm or have systemic implications, he claimed.
"The upshot is that the regulators get very, very little," he notes.
Toor says regulators need a direct channel to risk teams. “It would not only provide better