Make amends

The financial services industry has lost the confidence of investors, regulators and the public. But with better op risk management, banks can regain that trust. Pierre Pourquery outlines five actions they can take to create a more effective, business-orientated framework for managing risks

The financial crisis has sparked sharp criticism about the way banks manage their credit and market risks. But although risk management, in general, has become a focal point for bankers, regulators, politicians and investors, less attention has been paid to operational risk and the pivotal role it has played in the crisis. In many places, op risk management remains a vastly underrated discipline.

Operational risks were at the heart of many of the losses associated with the crisis. Some of the