KLIMLEY COMMUNICATIONS Sample Press Clip From Press Release on Standard & Poor's Bank Risk Benchmarking Study Distributed May 30, 2002 Press Clip– S&P: Banks Short on Risk Management Data July 19, 2002 Mortgage Servicing News New York – While banks have made progress in enterprisewide risk management, they remain hampered by a lack of data, according to a study by Standard & Poor's. Roy Taub, executive managing director of S&P's risk solutions group, said better collection and management of internal data "is clearly necessary." The S&P risk management benchmarking study, which was developed by a consortium of 50 large and small banks, looked at risk governance and strategy, market risk, credit risk, operational risk and capital management. Key findings were: * Few banks have more than five years of reliable internal data on probability of default. Fewer still have data for loss given default. * Banks are using internally developed models to extend their risk management capability. But most lack the historical data to develop and support these models. * Only half of banks in the study say they include risk management in their strategic planning process. * A majority of banks look at credit, market and operational risk, each aggregated separately, across the institution, but only a minority have a well-established aggregation methodology for operational risk. Copyright (c) 2002 Thomson Financial, Inc. All Rights Reserved.