Summary |
The risk management function’s primary responsibility is to understand the portfolio of risks that the company is currently taking and the risks it plans to take in the future. It must decide whether the risks are acceptable and, if they are not acceptable, what action should be taken.
Most of this book is concerned with the ways risks are managed by banks and other financial institutions, but many of the ideas and approaches we will discuss are equally applicable to nonfinancial corporations. Risk management has become a progressively more important for all corporations in the last few decades. Financial institutions in particular are finding they have to increase the resources thee devote to risk management.
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