Their ability to boost output without adding appreciably to their workforces, appears to have reflected a backlog of unexploited capabilities to enhance productivity with minimal capital investment, a delayed effect of the capital goods boom of the 1990s.
Especially for major banks that are exposed to keen competition in international financial markets, adequate risk management will require constant efforts to keep up with financial innovation. Needless to say, the management of financial institutions needs to fully understand the substance and nature of the information derived from the risk management system, and effectively use the information in making its management decisions. 3.