I will also touch on the broad objectives of effective operational-risk management and offer specific observations on some of the challenges of operational-risk quantification. In addition, I will describe the current status of the Basel II process. Importance of risk management Over the past several decades, we have witnessed substantial changes in the U.S. banking industry, particularly at our largest institutions.
(iii)  The difficult ‘C’s -credit and collateral  26. The issue of finding the right balance in securing a loan without pushing the borrower to informal sector has been a bugbear for the banking system. This is sought to be addressed through creation and development of right institutional structures. Let me delve upon some of these efforts: 27.