Banks' risk management faces test as Lehman collapse fades

08/13/2009 | Wall Street Journal, The

Lehman Brothers' collapse will no longer be reflected starting in mid-September in many value-at-risk models, which banks use to calculate acceptable risk-taking. If banks start taking changes, markets could experience an increase in volatility and trading volumes. If not, it will indicate that banks are not simply relying on VAR models. "I think this will be a good test of banks' risk-management areas," said Peter Rothwell, senior manager in KPMG's group for financial risk management.

View Full Article in:

Wall Street Journal, The

Published in Brief: