Risk management: the way forward

Reports that banks have to implement additional risk management techniques owing to the failure of existing models to prevent losses that occurred as a result of financial upheaval. Discusses survey results of chartered accountants Deloitte and Touche, about the establishment of banks’ new directions. Highlights four main points that are the direct result of several forces: financial markets globalization; regulatory developments; maturity of risk management; and complexity of financial products. Evaluates stress testing in organizations using a series of tables to emphasize them. Concludes that the survey indicates there is a general awareness within most financial institutions about key areas of strong financial management but other areas require further development.