Critical role of ‘risk control function’ in banks – Daily Mirror

In the influx of changing business priorities and competition in banks across the world, the greatest emerging risk for banks could be on account of the waning role clarity between ‘Risk taking function (RTF)’ and ‘Risk Control function (RCF)’. 

In the right perspective, they will always be distinct and different with lingering conflict of interest and must stay separated while the objective is unanimous. 

As emphasized in Bank for International Settlement (BIS) principles for risk management, banks should be able to develop a working relation to avoid organizational “silos” that can impede effective sharing of information across the organization. Necessary cooperation between the RTF and RCF should of course never compromise their special…