One of the main lessons from this turmoil is clear: bankers and supervisors need to remain focused on the big picture and the longer term horizon. Risk management and oversight Let me give you a few examples of some fundamental aspects of risk management and oversight that were violated by many.
As supervisors, we have seen time and time again that financial crises are characterised by the failure to adhere to basic risk management principles, especially during times of financial innovation. This crisis is no different. Weakness in fundamental underwriting principles, among other factors, was a key contributor to asset quality problems.