Payments risk: The fourth pillar of risk

Abstract

The recent financial crisis has highlighted the extent to which banks are ill prepared to respond to payments risk. This will change, as the new regulatory environment will require banks to address these gaps in their risk-management governance structures. How well the systemically important banks (in particular, the top 30 global banks) respond to this challenge could be a significant factor in their ability to influence the regulators on the ultimate direction of the legislation governing Universal Banking.