The tools available to financial institutions for gauging and controlling their risk exposures are more sophisticated than ever, yet this summer's subprime mortgage crisis and subsequent credit market downturn caught many off guard. Were firms listening to their analytics?
"There is no doubt that the availability of risk measurement and management technology provides the opportunity for better credit risk management," says Brian Ranson, head of the credit strategies group of Moody's KMV, a San Francisco-based unit of Moody's Corp. that provides credit analytics.
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