C. Myblog

Excerpt: Silo Risk Management Needs To Stop

September 23, 2011

Many credit unions are beefing up their risk management process.  However, a critical component of the risk management process that is missing for many is evaluating and managing risk in aggregate.

According to conventional wisdom, risk is quantified and managed in silos—including interest rate risk (IRR), credit risk, concentration risk, etc.  External forces no longer support this conventional wisdom as the world has changed.  Our belief is that decision-makers and regulators need to have a more comprehensive view of risk by attempting to quantify and manage risks related to the entire financial structure.

To read the full article, please see our c.notes page, available here.

Comments
  • Mike Stevens

    Excellent article. Very well written.

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