Press Mentions

Continuity Insights: The Cost of Faulty Risk Management – and How to Avoid It

Written by Atul Vashistha

Cost of faulty risk management
Fines resulting from poor risk management controls are becoming commonplace in the financial industry – and this new trend is just as expensive as it is avoidable. Recently JPMorgan was charged $250 million over inadequate risk management in its wealth management business.

Risk management errors and mishaps are becoming too expensive to ignore. The sad reality is that many banks appear to be considering these fines as a cost of doing business. This mindset, while commonplace across the regulatory environment, leaves banks even more exposed to cascading risk, catastrophic events and sudden market shifts.

In this article, Atul Vashistha, Chairman, Supply Wisdom highlights weakness in traditional risk approaches and why banks must re-evaluate their risk management approach and related controls, and reinforce a culture of continuous improvement.