A model approach

The financial crisis has highlighted shortcomings in the use of risk management technology. The lessons are proving a useful guide towards strengthening internal risk management practices at Asian financial institutions. By Wietske Blees

To say the current crisis has highlighted shortcomings in risk management would be an understatement. Risk managers across the globe have been stunned by the severity of subprime writedowns, the domino effects across seemingly uncorrelated asset classes and the duration of the downturn. Meanwhile, a skewed risk/return policy has left many banks badly prepared for the effects of the turmoil on