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Article: Risk management: a brief history: risk management has gradually evolved from a narrow insurance-based discipline to covering anything from traditional financial activities to the risk of a building burning down. But as Diana Thompson reports, the profession faces more changes to come. (Risk Management).
- Article from:
- Journal of Banking and Financial Services
- Article date:
- June 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Australian Institute of Banking and Finance. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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To most businesses, the concept of risk management is confined to financial aspects such as liquidity, interest rate and foreign exchange movements and credit risk.
But the risk game is fast changing, with operational risk--covering anything from a computer meltdown to a terrorist attack--assuming much more importance.
This increased awareness has not happened by accident, even if a big mishap does tend to focus the mind of any manager. Behind the change in thinking is the relatively new Australian risk management standard AS4360 and the drafting of the global Basel Accord, which will require banks to hold capital for operational risk management ...