Introduction

For years, many banks have claimed to run enterprise risk management (ERM) systems, giving them a firm-wide view of their exposures. The financial crisis, however, showed the practice was not as widespread as might have been thought. Regulators have highlighted instances in some firms where credit officers had raised red flags about lax underwriting practices ahead of the crisis, while traders at the same bank were hoovering up residential mortgage-backed securities in the secondary market to