
332 Operational Risk Control
That’s false. Cost control is a way of thinking, and therefore a process, not a one-
time event. Therefore, well-managed companies are steadily examining their business
policies and procedures to find ways to cut the roots of sprawling costs. The core issue
is not so much that costs have to be reduced, but that cost control should be a virtuous
cycle.
As a way of thinking, cost control helps banks maintain their profitability even
when business is flat or intensely competitive. That is why it is most important to
make virtually every cost, including labor, more variable than in the past. This is
helped by the fact that technology ...