Thanks Andy. There were some interesting additions/ revisions to the Diamond and Dybvig model of bank runs to include Franchise Value of deposits on the asset side of the BS. What surprised me was the almost total absence of operational risk from consideration- especially just 10 days after ICBC hacked.
My experience is that management never considers operational risk unless forced to by an event. otherwise it is just an expense they don't want to incur.
really interesting thoughts here. Were any answers achieved at the conference?
Thanks Andy. There were some interesting additions/ revisions to the Diamond and Dybvig model of bank runs to include Franchise Value of deposits on the asset side of the BS. What surprised me was the almost total absence of operational risk from consideration- especially just 10 days after ICBC hacked.
My experience is that management never considers operational risk unless forced to by an event. otherwise it is just an expense they don't want to incur.
thanks for the info