The risk function is not in place to manage risk, but to make sure that risks are managed.”  •  Banks need to align pay to risk-adjusted performance  •  There is a need to institutionalize an appropriate risk culture throughout the organization, where risk is everyone’s business from the board to the front line.
•  Banks need to improve the transparency, quality, accuracy and timeliness of information to support risk management. •  Institute enterprise wide risk management systems instead of managing the risks in silos. •  Use both qualitative and quantitative techniques with varied assumptions instead of blindly following the models. Ladies and Gentlemen!