Systems failure

Risk management

The finger of blame has pointed in many directions in the post mortem of the past year's subprime debacle and credit crisis. Over-optimistic rating agencies, lax regulators, negligent senior managers, ivory tower model makers, the models themselves, inadequate stress tests - the list of who or what might be culpable goes on and on. Risk management systems - the technology that is supposed to help banks identify their exposures and avoid losses - have not escaped the battery of accusations. Both...

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