Risk Management in the Age of Structured Products
Lessons learned for improving risk intelligence
A new financial services marketplace that’s very different from the old is emerging from the credit crisis. The new market will be more transparent, simplified, standardized and regulated, with fewer intermediaries.
In this series titled Shaping the New Financial Services Marketplace, the Deloitte Center for Banking Solutions will examine the rules, regulations and operating models that evolve as the industry sails uncharted waters. Specifically, these articles will focus on: strategies for success in the new marketplace, different types of global regulatory systems, the gap between financial innovation and risk management, the burden on compliance as change occurs and steps for integrating compliance risk management.
In this report, we examine the recent experience with structured credit products to provide a perspective on lessons learned in risk management and how those lessons can be applied by financial institutions.