There is a saying that history doesn't repeat itself, but it rhymes. And that is the dilemma for risk managers. It's very unlikely a new crisis will look exactly like a predecessor since banks build those scenarios into their risk models. But new crises are inevitable, and they will always share similarities with previous disruptions.

Given how quickly new risks are piling up there is an urgency to respond to this dilemma by implementing risk management platforms that can sense risk as well as see it clearly. Speaking at SIFMA's Systemic Risk Regulation Summit in June, the evp and head of enterprise-wide market risk at Bank of NY Mellon, Robert Rupp, said the uncertainty around global banks' exposure to Greek debt and other European government bonds reminded him of the early days of the financial crisis when banks and markets were uncertain how they were exposed to each other and the mortgage market. He warned: "You need to see the unseeable."

Register or login for access to this item and much more

All Information Management content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access