BIS Review 29/2008  on their books, they had exposure through off-balance sheet vehicles holding mortgages, through claims on counterparties exposed to subprime, and through certain complex securities. Adequate distribution of information allows for an enterprise-wide perspective on risk. Information must percolate up to senior management, but top executives must, in turn, disseminate their views and analysis back down through the business lines.
Moreover, the market and financial supervisors are requiring the adoption of more sophisticated and comprehensive techniques for the management of risks associated with larger and more complex firms. However, the benefits of lower costs, greater diversification, and better risk management at large, complex firms depend on many particulars, including robust infrastructure and a reduction in the opaqueness that results from increased firm complexity.