NY Fed CRO urges banks to improve risk controls

Risk USA: Tangled web of controls threatens ability to recover from attacks, says Rosenberg

Banks are choking under a proliferation of risk controls intended to help them prevent disruptions – rendering them more vulnerable to outside threats, not less, according to a senior risk manager at the Federal Reserve Bank of New York.

A key plank of most operational risk frameworks, risk controls are used by firms to monitor and guard against risk breaches, hopefully before they crystallise as losses. For instance, a first-line risk manager might monitor whether a trader on a particular desk