As this audience knows well, good risk management is more than just data. In their proposed supervisory guidance relating to Pillar 1, the U.S. banking agencies have stressed the importance of control and oversight mechanisms. In this area, we expect to hold institutions to standards that will be just as high as those pertaining to quantification and data maintenance.
Phase two: rapid recovery Despite the rapid slowdown, the recovery was faster than those that followed previous recessions. Why? Neither exports nor investments can provide the answer. While GDP has recovered to prerecession levels, business investment and exports have only recovered 45 per cent and 67 per cent, respectively, of the losses incurred during the recession.