Speech by Mr Simon Topping, Executive Director, Banking Policy, Hong Kong Monetary Authority, at the ACIHK The Financial Markets Association Basel II Seminar, Hong Kong, 27 September 2005.
Only a few years ago it might have seemed a bit strange to invite a regulator to speak on the subject of risk management. After all, a regulator was supposed to have the same relationship to risk as the preacher did to sin: he was against it.
Historically, regulation and risk management were opposites. Regulation was supposed to be all about stopping banks from taking risks. Risk management, by contrast, was concerned with how you take on risk and how you manage it. Regulation has been criticised, rightly in my view, for taking insufficient account of modern risk management techniques such as credit risk and operational risk modelling, stress-testing, and portfolio management.
See full Speech, in pdf format.
Posts
