Fed's Bies on factors in risk management

In the speech 'It's not just about the models: Recognizing the importance of qualitative factors in an effective risk-management process' given on 7 December, Susan Bies of the Federal Reserve said mathematical investment models are not enough on their own to ensure effective risk management by financial institutions.

"It is important that we not let models make the decisions, that we keep in mind that they are just tools, because in many cases it is management experience -- aided by models to be

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