A risk-sensitive compensation  3  Randall S. Kroszner, 2008, "Improving Risk Management in Light of Recent Market Events," speech delivered at the Global Association of Risk Management Professionals Annual Risk Convention, New York, February 25. 4  Institute of International Finance, 2008, "Final Report of the IIF Committee on Market Best Practices: Principles of Conduct and Best Practice Recommendations," July, http://www.iif.com/regulatory.
BIS Review 127/2008  5  framework will help provide the right incentives for employees, and establish a better link between the actions of those employees and the firm's overall risk profile. Institutions should be particularly sensitive to employee activities that could either directly or indirectly impair access to funding or disrupt liquidity.