SunTrust’s ‘swim lanes’ keep exposures in line
Bank has five bands of risk – a granular approach it says makes it easier to control exposures
Most banks are happy with the color-coded risk indicators: red, yellow or green.
SunTrust Bank is doing something different. The Atlanta super-regional has assembled no fewer than 215 metrics for risk appetite. Assets are strained through those metrics and placed into one of five “swim lanes”: averse; conservative; balanced; tolerant; or aggressive.
Should any asset dog-paddle outside its lane, the C-suite and risk committee are alerted.
“Our risk appetite has been stated as moderate for
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