Being the party pooper, however, can be very difficult in any organization, and that is why it is crucial for the risk manager to be known as an independent voice who is influential with top management.
With a view to have an objective assessment of the true cost of implementation of Basel II, banks would be well advised to institute an internal study to make a true assessment of the costs involved – exclusively for the elementary approaches. The informal feedback that we have from banks reflects that they do not see Basel II implementation as a ‘costly’ proposition.