Sound risk management essential: Fed's Kroszner

The current financial market turbulence underscores the importance of getting the fundamentals of sound risk management right and being ever vigilant about their consistent application, execution, and improvement in light of new data and experiences, said Randall Kroszner, a governor at the Federal Reserve.

Kroszner highlighted the importance of three fundamentals in risk management: governance and risk control; risk identification and measurement; and liquidity risk management.

Evidence

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