INTRODUCTION
Effective risk management is the hallmark of any successful financial institution. The success of financial institutions heavily relies upon the security, privacy, and reliability of services backed by strong and up to-date operational practices.
Effective risk management strategies can be implemented by integrating effective bank-level management, operational supervision and market discipline. It is also imperative for these institutions to update their risk management practices in accordance with prevalent legislation and the current regulatory environment. With each of these aspects in mind, the Basel Committee on
Banking Supervision published the Capital Adequacy Accord, also known as the Basel Accord, in 1988.
The Basel Accord defined the parameters of risk management and capital adequacy for Financial Service Providers.
With the on-going growth in the financial services sector, the committee saw the need to update the accord to coincide with new developments. As a result, it proposed the new Basel Capital Accord, also known as Basel II, in June 1999. With its new risk-sensitive framework, Basel II aimed to fill the gaps left...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
