The Report defined a set of sound risk management practices for dealers and end-users as well as describing VaR techniques. Roots of both the qualitative and quantitative standards in the internal-models approach can be found in the Report’s discussions.
Derivatives No Longer the Scapegoat It is, no doubt, a reflection of the overall quality of risk management in the OTC derivatives business, and the widespread acceptance of the principles articulated in the G-30 Report, that derivatives are no longer the scapegoat for all episodes of market volatility. The role that derivatives can play in allowing counterparties to manage risks is now widely accepted.