The Bank of International Settlements BIS has released a report that urges banks to review their risk management strategies in light of the way technology advances have magnified and changed traditional risk exposures.
The Basel Committee on Banking Supervision, which authored the report, points to several key areas that are having an impact. These include the unprecedented speed of change related to technological and customer service innovation, the ubiquitous and global nature of open electronic networks, the integration of e-banking applications with legacy computer systems, and the increasing dependence of banks on third parties that provide the necessary information technology.
The committee has identified 14 risk management principles that cover strategic, operational, legal and...
