Their managements need the more sophisticated and systematic processes that risk modeling can provide, but they also need to ensure that an incorrect or weak model does not bring down the house. I would offer that success in this area often requires grey hair and keen intuition as well as highly developed analytical skills.
Beyond these points, accounting and disclosure practices must be considered as they relate to such matters as earnings volatility, customer suitability, and the incentives or disincentives they provide to risk managers. Fundamental elements of corporate governance must also be adequately addressed and they naturally become more challenging as activities become more complex.