Fed’s Bies puts emphasis on qualitative approach

GENEVA -- Susan Schmidt Bies, a member of the Federal Reserve Board, emphasised the importance of the qualitative aspects of risk management in a keynote speech at a risk management conference in Switzerland at the beginning of December.

"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