Strategic shortcomings

A survey of 13 private banks’ risk management practices reveals some dangerous shortcomings. Lisa Kastigar of Sherwood Alliance, a Switzerland-based financial consulting firm, examines the challenges for risk managers at these institutions

Changing macroeconomic conditions, regulations, competition and technology have led private banks, which cater to the banking and investment needs of wealthy individuals, to adapt their strategies, offerings, pricing, infrastructure and cost basis. Similarly, these factors are affecting private bank clients. Lower portfolio returns, increased concerns over privacy and fiscal regulations, greater leverage in the market-place and improvements in internet speed, access and content have led to