CAMBRIDGE, Mass.--(BUSINESS WIRE)--The current risk management system for international banks is insufficient to prevent large losses of capital, according to MIT Sloan School of Management Visiting Professor Gordon Alexander. In his research on the current regulatory framework for trading books -- which utilizes Value-at-Risk and Stress Testing to assess downside risk and to determine capital adequacy – he found those measures to be inadequate to prevent future economic turmoil. “Regulators are
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