A model approach

Technology

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 their businesses.

As a result, major financial institutions have had to accept humiliating bailouts or