White paper

A well-designed approach to managing risk information is a critical component of a superior risk management programme. A high-quality risk information management programme continues to be a blind spot and elude even the largest of ?nancial institutions (FIs). For example, risk management at many large FIs has proved ineffective in organising their risk information to model the risk of complex structured products. This paper shows how inferior information quality adversely affects risk management. It then discusses ways to assess the quality of risk information in ?nancial institutions as well as showing how to address this problem in a cost-ef?cient manner.