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Full Report Risk „aster Taking on and managing risk has al­as confidence‡ ­hich must come from This reŒuires investment in po­erful ‚een‡ and ­ill remain‡ core to investment leadership‡ and clear communication of technolog to process comple‘ e‘posure ‚ankingˆ Ho­ever‡ the a‚ilit for ‚anks to the risk strategies and appetite of the calculations at high speeds‡ and to make do so is clearl challenged ‚ regulationˆ ‚ankˆ Additionall‡ the a‚ilit to commit availa‚le the right information at the right Reforms designed to restrict proprietar is dependent on organisational fle‘i‚ilit‡ timeˆ „ost of all‡ a culture of effective risk trading –eˆgˆ the ‘¦olcker rule’— are likel to ‚ack e‘ecutives’ decisions ­ith control must ‚e spread throughout the to cur‚ a ‚ank’s a‚ilit to take on risk to a sufficient speed to market‡ a challenge for organisation‡ to ensure continual discrete set of more limited forms‡ nota‚l pu‚licall’listed ‚anks ­hen competing a­areness and management of risks takenˆ hedging and market’makingˆ Increasing ­ith more nim‚le private firmsˆ The model is the most comple‘‡ and regulator oversight ­ill also force ‚anks Risk „asters must also understand ho­ takes the most time to adopt of the five to demonstrate more effective risk control‡ to ma‘imise their risk mitigation strategies ­e have outlined ‚ut risk master has causing compliance costs to riseˆ and control un­anted riskˆ The model calls ‚een sho­n‡ and is likel to remain‡ Successfull taking on risk reŒuires for informed supervisor committees that a ke performance differentiatorˆ effective control‡ management and have the po­er to ‚oth control and Œuickl commitmentˆ But commitment reŒuires pursue risks ‚ased on relia‚le informationˆ Figure 1ƒ Risk Master Model Key hoice ore ‚usiness low onseƒuence erormance utcome Dierentiator Source Accenture Research Sustainable Revenues Hig Profits Dependant Algorithmic lient low Eective osition on regulatory Hedging Execution Market-Making acilitation Management allowances Ability to Maximised Risk Enter Markets Mitigation Strategies Sufficient Commitment Effective Confidence to Control Take on Risk Market onditions Ability to React Clear and Efficient ­uickly Readily Available Process and Shareholder Management normation Structures Appetite nderstanding rganisational Influential and Accurate and Rapid o Risk lexibility Informed €aluations Supervisory Committees Effective Powerful and Management Efficient Systems Investment in Risk Management Capabilities €†

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