In addition, bankers should be mindful that problems can sometimes quickly arise in a business line or unit that has presented no past difficulties. Accordingly, it is always helpful to evaluate the "what if" scenarios even for the most pristine of business units.
But the manner in which risk management challenges are addressed can - and should - vary across institutions, based on their size, complexity, and individual risk profile. In many cases, it simply does not make sense for small organizations to adopt the most sophisticated risk management practices but that does not absolve such smaller institutions of their responsibility to improve risk management.