Re: Article 4

From: Lionel
Affiliation:
Address:
Date: 21 Feb 2008
Time: 07:58:49

Comments

I think the issue of risk managers grooming themselves to be traders is easily addressed by maintaining a clear distinction between the front and middle offices, including not allowing any job hopping between the two. This isn't new. The Group of 30 Report recommended such a separation almost 15 years ago, but few firms maintain such a separation (Soc. Gen. is a reminder, if we even need one). I think this relates to what Glyn says. There is no standardization in risk management. No matter what good recommendations have been in circulation from the start, everyone just makes it up as they go along. Obviously, this isn't serving shareholders, but they are the only group whose interests risk management should legitemately represent.

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