Risk managers leapfrog lending officers in bank hierarchy, says Greenspan

US Federal Reserve chairman Alan Greenspan says risk managers are now overtaking loan officers in the decision-making hierarchy at financial institutions, with new quantitative risk management techniques a key factor behind this transition.

“Before the most recent period, risk officers often have not been heard clearly enough and early enough, perhaps because they have not had the quantitative justification for rejecting weak credits until it is too late,” said Greenspan during a speech late