Financial Times FT.com

Risk of derivatives ‘not fully evaluated’

By Saskia Scholtes and Richard Beales in New York 

Published: March 25 2007 22:03 | Last updated: March 25 2007 22:03

Fewer than half of global financial institutions account sufficiently for complex financial and commodity exposures in assessing the riskiness of their holdings, according to a survey by Deloitte. 

The results suggest that much of the industry may “lag behind the explosive growth of credit derivatives and their attendant risks”, the firm said. Risks in energy and other commodity derivatives were also not fully evaluated by most institutions, the survey found.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this