More NewsQuarter of Leading Global Banks to Urgently Review Risk Management

Quarter of Leading Global Banks to Urgently Review Risk Management

Almost a quarter of leading global banks surveyed are to implement additional risk management techniques because existing models failed to prevent losses which occurred as a result of financial turbulence during the past year. This is the main finding of research released recently by chartered accountants Deloitte & Touche. The survey found that many banks now realise that current risk management techniques, particularly ‘value at risk models’, failed to perform during rough market conditions. The findings show that 24 per cent of respondents will re-enforce existing techniques with the ‘extreme value theory’ to deal with exceptional events, a method which is currently only used by five per cent of banks. In addition, the majority of those interviewed said that the failure of their risk models to cope with the loss of market liquidity was a major concern. As a result, over half of those surveyed plan to implement systems to measure extreme stresses on liquidity.

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

3w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

5m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

5m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha