Re: Article 4

From: powel
Affiliation:
Address:
Date: 22 Feb 2008
Time: 15:07:14

Comments

Okay, there is a disconnect between what we do (monitor market risks, run models, etc.) and what we are blamed for by the media (not preventing sub-prime or market timing fiascos). Yes, it is convenient to bundle such sub-prime events under operational risk, but techniques for addressing operational risk don't begin to address how to avoid such losses. Mostly operational risk managers seem consumed with quantifying operational risk for Basel II. What do we do? Do we EDUCATE the media and everyone else that it is not our function to address things like the next sub-prime mess? Or do we change what we are doing o become able to address the next sub-prime mess?

Disclaimer