Booz & Co // Schlepp Airlines

A new report by the consultancy Booz & Co has, unsurprisingly, called for a return to basics in risk management and a restoration of what it calls “a strong risk culture”. Booz says businesses need to build in three lines of defence: in the front office, where “sustainable risk-return thinking” must prevail; in the wider business, where risk managers need enhanced authority; and in internal audit teams, whose risk management skills need to be improved.

On a UK blog Schlepp Air is the metaphor to drive the point home.

Sometimes we like risks to be taken seriously. This is a touchy subject in the banking sector right now. These are not great days for the reputation of financial risk managers. Their “value at risk” models first lulled bankers into a false (and perilous) sense of security, but are now causing the financial system to seize up.