Basel III will herald the ascent of enterprise risk management

The current crisis will represent the renaissance of ERM and the vindication of op risk management

Some people have criticised the tone of last week's editorial, which heralded the death of Basel II and the rise of Basel III, saying it might have implied Basel II had failed. But although there are obvious problems and oversights in the Basel II regime (as the recent economic crisis has shown), it has played a big role in the evolution of operational risk as a separate risk discipline. Without all the work done on implementing operational risk management tools and putting a framework in place