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It’s almost 20 years ago that I was asked by the Chase Manhattan Bank’s COO, Rick Mangogna, to form and lead a team with a mission to design and implement a risk reporting framework for global operations. We soon understood that achieving our mission depended on the successful definition of a common risk quantification method that could consistently and reliably identify, quantify, aggregate and compare all the diverse exposures to risk present in bank operations.

Under Rick’s sponsorship we codified and implemented such a solution that was deployed in the bank’s principal operations centres. The breakthrough thinking behind the solution was the definition of a new additive risk metric to unify the diverse risks inherent in operational processes within a common risk quantification framework. We called our new metric a ‘Risk Unit’ or ‘RU’.

After I left Chase Manhattan (JPMorgan Chase) my career took an academic turn and I was privileged to work with some impressive thinkers in the accounting, finance and risk domains. Our collective aim was to upscale the risk quantification technique pioneered at Chase Manhattan and adapt it for application to all types of non-financial risks in all industries.

In this endeavour, I’m particularly grateful to Allan Grody who provided great insight into moulding the technique we now call ‘Risk Accounting’. Professor Grody (now retired) founded and taught the only graduate level Risk Management Systems course at NYU’s Stern Graduate School of Business. I also collaborated with Professor J. S. Toms of the Leeds University Business School, Professor K. J. Fernandes, Professor J. Williams and Professor Dennis Philip of the Durham University Business School, and Dr Mahmoud Marzouk of the University of Leicester School of Business who added their considerable expertise and intellect in shaping the method.

In the pages of this website you will find information that we hope will trigger your interest in supporting this endeavour either as an individual or corporate member. Details of how to apply for membership are provided.

We look forward to enjoying a long, productive and professionally stimulating relationship with our members.

Peter J. Hughes

Chairman of the Risk Accounting Standards Board, RASB