Chains of command

In the aftermath of the credit crisis, major financial institutions are seeking to address flaws in risk management practices, changing the reporting lines for chief risk officers and committing additional resources. But broader structural and cultural changes may be required to properly empower risk managers. By Rob Davies

Apportioning blame for the losses that have, since mid-2007, ravaged the balance sheets of several financial institutions in the US and Europe is a tricky business. The initial round of finger-pointing at institutions that lost billions on subprime mortgage-linked investments focused on the chief executives.

Charles Prince at Citi, Merrill Lynch's Stan O'Neal and Peter Wuffli at UBS are the most high-profile chief executives to depart so far as a result of recent losses. But with the