The Future of Risk Management - the role of Integrity

I think if there is a common theme to the future of risk management, it’s probably the notion of systems integrity. What does integrity mean – I think it means consistency between parts and the whole. In the context of the future of risk management, this notion of integrity has specific meanings:

• Integrity of front office and middle office systems
• Integrity between management, traders and middle office
• Integrity of returns and risk
• Integrity of remuneration and risk adjusted returns
• Integrity across risk types especially market and credit
• Integrity across tail and non tail risks
• Integrity between economic measures of risk and regulatory measures
• Integrity between the network of capital and resource providers and the organization