to Risk Management
Obviously banks make money by taking risks and lose money
by not managing risks effectively. To produce superior share-
holder returns in current markets, banks must take on higher
levels of risk than in the past.
Edward E. Furash (1994, 34)
We bankers must develop cultures that foster and reward the
management of risk. We must continually update our risk-
management policies to ensure that they reflect changing in-
Marshall N. Carter (1995, 26)
At a mouse click, one can surf the Net and shop for the best Certificate of Deposit (CD) rates. At another click, one can shop for the best mortgage rates. At a third click, one can buy stocks, bonds, mutual funds, and insurance. Sometimes, the seller of CDs, mortgages, stocks, mutual funds, and insurance is a bank around the corner. At other times, the seller is a financial service or an investment securities company somewhere around the country, or around the globe.