Fed’s Bies puts emphasis on qualitative approach

CORPORATE GOVERNANCE

"First, sound risk management is more than technical skill in building internal models," said Bies. "Models of risk need to be integrated into a robust enterprise-wide programme that encompasses even line management’s routine business practices. Second, regular testing of ‘data integrity’ in its broadest sense as it relates to these risk measurement and management processes is essential to the effectiveness of these processes. Finally, I want to raise some issues around accounting and disclosure