Lessons have been learned, and with the re-design of the supervisory architecture in many countries around the world, and the Basel III regulatory reforms, enhanced preventive tools are underway. But also from a monetary policy perspective, greater emphasis on “ex-ante” prevention is warranted.
The risk manager must be well versed in the risk management process and be able to effectively communicate and lead the processes within the organization to mitigate exposure to business risks. In support of this he must have a good understanding of the environment and community served by the organization, the operations of different units and relationship between different levels of the organization.