US: Operational risk managers face merger challenges

The operational risk function might not have a say in a firm’s strategic merger plans, but it can prepare it for the risks involved in the union. David Benyon discusses the operational risk manager’s role as adviser to newly married fims, and presents a number of case studies related to US banks in the crisis

Taking rash decisions in times of stress or excitement is human nature. As individuals we have all done it: throwing caution to the wind in the midst of crisis, only then to ponder the risks taken and later, potentially, having to pick up the pieces. And so it has been for some of the biggest US banks in the past year. Firms with reputations built on decades of sustained growth and decision-making