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| "A
ZERO RISK CULTURE IS
MEANINGLESS" |
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Interview: Yves
Randoux
"The high level of security in
the CB system is still
compatible with its effectiveness
as a consumer system" |
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For Cartes Bancaires, the CB system’s security
and risk containment are both commercial and regulatory
requirements. Since 1999, through our unique “Risk
Management” structure, we have been focussing
upstream on the identification, analysis and processing
of all technological risks in the electronic payment
chain. Our approach aims to bring onboard all stakeholders,
in liaison with the experts in the various institutions.
This risk prevention and management policy has led
to particularly positive results. It has allowed the
CB card to become a totally reliable and secure method
of payment imbued with user trust.
The results of TNS-Sofres
surveys are eloquent in this respect: the bankcard
is more than ever the method of payment preferred by
French and even Europeans, principally because it is
considered particularly secure. Our security requirements
must not, however, disrupt or hinder the CB system’s
operation.
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| This
risk prevention and management policy
has led to particularly positive results." |
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The level of security must be very high
but remain compatible with the required effectiveness
of a mass consumer system. It is for this reason that
we constantly check with all CB system stakeholders
that our standards are economically realistic. A zero
risk culture is meaningless. Our aim is to maintain
a balance between an acceptable level of risk and an
economically viable level of investment. |
| • Interview
by Delphine Goater |
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want to know more |
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The
implantation of Basel II
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The
Basel Committee, in its deliberations
on improving the supervision of financial
institutions, decided to submit to
banks an obligation to allocate shareholder
equity to operational risks in addition
to the equity already required to cover
lending or market risks. This is the
first pillar in the Basel agreement
edifice. The process of prudential
surveillance is the second pillar.
The Commission Bancaire (the entity
in France that oversees banking operations)
will have to verify that the equity
French banks allocate is sufficient
to cover their risk management. The
internal procedures applied by banks
will be analysed under this framework.
Market discipline is the third and
last pillar. It defines the rules with
which banks must comply when publishing
information for market stakeholders
so that they have access to comparable
and quality data. Basel II will come
into force in January 2007.
For more details, log onto www.fbf.fr,
and click on "L'entreprise bancaire" (The
bank as a corporation), "Maîtrise
des risques"(Risk containment). |
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