Financial Update (October-December 1996)
Atlanta Fed's Risk Management
he Atlanta Fed has created a new department to reorganize risk management functions into one area. These various functions were previously scattered across several departments at the Bank.
The new department, headed by Lois Berthaume, is called Credit and Risk Management and encompasses the following areas:
The reorganization, which will be phased in over the coming months, is a Federal Reserve System effort, approved by the Conference of Reserve Bank Presidents. The changes are expected to enhance the effectiveness of these functions. The new department will be divided into three functional areas: Payments System Risk, Loans and Credit Analysis, and Operations.
- responsibilities for discount window and collateral management and for counterparty/vendor risk review;
- daytime and overnight overdraft monitoring;
- payments system risk responsibilities that were previously shared by the Discount, Atlanta Accounting, and Supervision and Regulation departments;
- responsibilities that were previously unassigned, such as service and product risk assessment and risk management policy development and analysis.