Phill Robinson-Welsh, a director at Chase Cooper, a Basel II consultancy and systems provider based in London, said, "Of course, a ‘Barings’ could happen again, but whether it would depends on a company’s risk culture, awareness of risks and their causes, and how well they are actually being controlled. This is not a once or twice a year exercise – it is on-going. Risks change in frequency and impact, controls change in design, and especially performance. Management must be aware of these changes and act promptly to plug gaps and strengthen weak controls.”

Robinson-Welsh went on to say, “The Basel 2 Accord on Capital Adequacy seeks to provide investors with greater confidence in the international banking system through, among other things, the Pillar 1 capital charge for operational risk. Had Basel 2 been in place 10 years ago, this would still not have saved Barings. However, Pillar 2 – Supervisory Review – requires that a robust and thorough risk management framework is at the heart of any financial institution. Barings could happen again, but it should now be harder to ignore signs of a catastrophic failure. Company executives should now ensure they are ready to comply fully with Basel 2 and all relevant regulations. I believe that despite the cost of compliance, companies will derive value by potentially lowering their capital charge, minimising losses, and keeping out of the headlines!”