But with the advent of very large banking organizations that engage in a wide variety of business activities--some of them quite complex--the Federal Reserve has become even more interested in ensuring that banking organizations understand the risks of these activities as well as their potential impact.
As organizations grow larger, one of their major challenges can be described as making sure that the “right hand” knows what the “left hand” is doing. In other words, risks must be recognized and managed across the entire organization.