The Rise of Risk Management: Basel and Beyond
July 30, 2002
|On Wednesday, July 31,
2002, the FDIC will conduct a symposium entitled "The
Rise of Risk Management: Basel and Beyond" co-sponsored
with Credit Suisse First Boston. The focus of the symposium
will be on bank risk management systems, including their
performance, the challenges posed by the new Basel Capital
Accord, and the issues raised by the move toward risk
management-based bank regulation. This issue of FYI
outlines the agenda of the symposium and provides links to a
live webcast of the proceedings.
risk management systems are increasingly important to the health of
financial markets and the macroeconomy. As banks, brokerage firms,
government sponsored enterprises (GSEs), and other financial institutions
become larger and more complex, their health and stability increasingly
affect the global financial system. How these institutions manage risk
will impact not only their own bottom lines but in many cases will also
affect the performance of the domestic and world economies.
With the implementation of a second Basel Capital Accord on the
horizon, bank regulators are poised to embrace the culture of risk
management in new ways. Under the proposed new Accord, regulatorsí
decisions about the capital adequacy of the largest banks would be based
on their evaluations of bank risk management. As internal risk management
systems enter the regulatory arena, the competitive dynamic between large
banks and small, and between banks and non-banks, may change. Traditional
notions of bank capital adequacy may be re-examined, and the disclosure of
new risk-related information may increase the efficacy of market
The Federal Deposit Insurance Corporation will conduct a symposium on
Wednesday, July 31, 2002, entitled "The Rise of Risk Management:
Basel and Beyond." Co-sponsored with Credit Suisse First Boston, the
symposium will address three basic questions:
- How well have risk management systems performed in the volatile
economic environment of recent years?
- What are the challenges for risk management as the new Basel Capital
Accord moves toward implementation?
- What issues do the financial regulators need to address as they
implement a risk management-driven approach to supervision and
Participants will include a number of prominent figures in banking and
finance, financial regulation, and the analyst community, including: Peter
Fisher, Undersecretary of Treasury; Franklin D. Raines, Chairman and CEO,
Fannie Mae; and Ken Thompson, CEO, Wachovia.
FYI readers are invited to follow the July 31 proceedings live from
their desktop using links provided on the symposium home page at: http://www.fdic.gov/news/conferences/riseofrisk.html.
A complete symposium agenda is available at this location, along with a
link to opening remarks on risk management in banking by FDIC Chairman
Donald E. Powell that will be posted at 10 am.
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