WASHINGTON - Risk management practices in many countries' banking systems are inadequate to the challenges of the modern economy, Federal Reserve Board Governor Laurence H. Meyer said in a speech prepared for delivery Thursday night.

Addressing a conference in Bangkok, Mr. Meyer said that in the current economic environment the level of risk facing a bank can change quickly and dramatically. Managing such risk "is fundamental to sound banking and requires, I am afraid, a revolution in many of the world's banking systems," he said.

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