The International Monetary Fund appointed an independent panel to review the fund’s risk-management framework that will be led by Guillermo Ortiz, former governor of the Bank of Mexico.
The four-member panel also includes JPMorgan Chase & Co. International Chairman Jacob Frenkel, Deutsche Bank Group Vice Chairman Malcolm Knight and Thomas O’Neill, former chief executive officer of PricewaterhouseCoopers Consulting and former member of the IMF’s audit committee, the Washington-based IMF said today.
“The review is intended to provide an objective and expert assessment of all aspects of the fund’s risk management framework --- the processes used to identify, evaluate and mitigate potential risks to the Fund and its operations,” the fund said in a statement released in Washington.
The panel will set its own scope and timeline, taking into account the IMF’s “unique role in the international financial system, particularly its surveillance activities and responsibilities as a lender of last resort,” the IMF said. Its focus will be a risk-management framework set up in 2007, the fund said.
Group of 20 nations have turned to the IMF to help develop a system for monitoring currencies and trade imbalances, in hopes of identifying problem areas before they grow into full-fledged crises. The IMF also has worked this year with the European Union to craft rescue packages for Greece and Ireland.
Treasury Secretary Timothy F. Geithner has said the IMF will play a “critical role” in efforts to overhaul the global financial system and shore up the world economy. “It is ultimately the responsibility of countries to act, but the IMF must speak out effectively about challenges and marshal support for action,” he said at the IMF’s annual meetings in October.