Kristin R. MoyerDoug McKibben here. Corporate performance is about reliable and sustainable processes and performance against those processes and associated policy. More timely adoption in the U.S. of the principals of Basel II may be a starting point, but what we are seeing here is operational failure. The largest institutions in the U.S. have opted into Basel II guidelines and may be meeting the letter of Basel II, but given their performance in the current market, they too clearly have much more work to do to reduce operational risk.
Most institutions following Basel II globally use an indexed/standardized approach for operational risk, which basically permits business as usual since operational risk capital is levied based on their revenue, not on any operational risk metric.
CIOs can provide data, but what is being measured? You can’t manage what you can’t measure, but you can’t measure what you can’t see.
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Category: Uncategorized Tags: banking and investment services, Basell II, financial services restructuring, market crisis
