A key theme I would like to highlight today is that all banking institutions should seek ways to improve risk management, but that the methods to improve risk management should depend on the size and sophistication of the institution.
In my remarks I will look at some recent cases in which we believe bankers and supervisors have learned some key lessons about enterprise risk management, or ERM. These lessons demonstrate how good risk management increases business efficiency and profitability. But before I start discussing particular examples, I want to take a step back and give you my thoughts on ERM generally.