Friday, May 1, 2009

Accenture has published a white paper to outline how the financial indistry should respond to the financial crisis, based on possible ouitcomes of the London G20 Summit held in April, 2009. Among their suggestions, and a theme that runs through the report, is an emphasis on risk management designed to protect revenues. This in itself is not remarkable, but they go further and emphasize that risk management must be treated as an integral part of the organizational management, and not as just a compliance function. This would entail organizational and cultural changes in the banks, but changes that would place a greater role on risk management in ongoing strategic and managerial decisions. It's a good sound paper, that also provides a number of examples of sound risk management by banks in other (non US) countries, including Canada, whose financial system has weathered the crisis more successfully. The white paper is downloadable from the Accenture site.

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