This ACCA paper looks at some of the root causes of the credit and liquidity crisis, and the need for tighter regulation.
Climbing Out of the Credit Crunch
Also explored are the excessive short-termism and lack of accountability, both within financial institutions and between management and shareholders. Did risk management departments in banks lack sufficient influence, status or power? And were there weaknesses in reporting on risk and financial transactions?
Examined are some of the issues involved in the credit crunch:
• corporate governance
• remuneration and incentives
• risk identification and management
• accounting and financial reporting