Banks adjust to new risk culture

Banks are in the risk business. Assessing, quantifying and acting on the trade-off between risk and potential return of a loan, a transaction or project is what they do. Their staff — or at least the rainmakers and top traders — are highly paid for their expertise and the success of their judgments. Hefty profits are channeled upwards as bonuses to senior management and across to shareholders as dividends and share price performance.