Abstract\r\nThis article assesses bank management�s perspective on the use and effectiveness of the risk measurement system\r\nunder Basel II that set capital requirements for banks. These requirements encouraged the use of risk measurement.\r\nSemi-structured interviews with various bank managers at Viking Bank (a fictitious name) provide the empirical data\r\nfor this research. These interviews were conducted after the global financial crisis that led, among other events, to\r\nthe bankruptcy of Lehman Brothers. Viking Bank was an important European bank that embraced Basel II and risk\r\nmeasurement. In its efforts to implement risk measurement, the bank�s management accounting department was\r\nreduced and subordinated to the risk measurement department. Risk measurement information became the bank�s\r\nprimary source of information for some loans.\r\nThe financial crisis has made us more reluctant to use risk measurement. This was not the case before the crisis hit\r\nus. (Senior bank manager, Internal Auditing, Viking Bank)
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