Regulators drive op risk innovation, says Meridien

Banks will need to step up their efforts to comply with the operational risk components of the revisions to the Basel Accords, says a new report from Meridien Research, a consultancy based in Massachusetts.

The report’s author, Deborah Williams, says, "It is clear that the point of pain for nearly every financial institution is simply achieving compliance with regulatory requirements. Motivations to adopt operational risk solutions clearly stem not from the severity of operational risk losses or a perceived lack of competitiveness, but from a purely defensive position."

The report says that European financial institutions, spurred on by the more active regulatory regimes of countries such as