Thus Risk Silo Management can be defined as the measurement and control of market, credit
and operational risks in ‘silos’ across the organisation. It has gained wide enough acceptance
to influence the current reforms to the Basel Accord (Basel II) and local supervisory regimes,
which require banks to hold capital reserves corresponding to their measured risk profile. Risk
Silo Management, apart from determining regulatory capital, also entails setting limits for
different risk types, as well as monitoring and reporting developments in the risk silos.