Swift, who has spent the past year talking to bankers and other experts about Y2K issues, says US banks with overseas operations will need to pay attention to foreign transactions and counter-parties since the remedial work done in some developing countries appears lacking. During last year's global financial crisis, money center banks learned once again how risk can ricochet from one country to the next. Even when the US economy is doing well, domestic banks are not insulated from troubles in other parts of the world. Cyber-crime also has an international dimension. The very networks that unlock the power of the computer leave institutions more vulnerable to abuse and criminal activity, from anywhere in the world.
Exposure can spring from within institutions as well.
Contributing author Paul Sweeney shows how internal fraud reinforces the need for systematic efforts to protect information. Risk management may not be the most exciting topic in banking, but in an industry built on public trust, it is the glue that holds the entire enterprise together. Managers have no choice but to evaluate exposures constantly. After all, stress tests performed inadequately today will be administered on far more rigorous terms by the market tomorrow. We respect your privacy .