Magazine : Archives : 2nd Quarter 2014

Handling Risk in the Modern Age

Risk and banking go hand in hand, but the industry’s approach to risk management has changed dramatically since the 2008 credit crisis. The Dodd-Frank Act requires banks with assets greater than $10 billion to have a board-level risk committee, and many of their smaller brethren have followed suit. Enterprise risk management (ERM) programs, which take an overall view of risk at the institution instead of managing risks like credit and compliance separately, have been adopted by many institutions. The board’s role in risk oversight, both in terms of time and responsibility, has increased exponentially. Many financial institutions are adjusting to...