During the last 40 years, risk management has evolved tremendously. The technologies and methodologies to measure risks have reached impressive levels of sophistication and complexity. However, the 2007 to 2008 financial crisis clearly demonstrates that substantial improvements in the way financial institutions measure and manage risks are still urgently needed. This chapter provides an analysis and discussion of risk management as well as several proposals on how the financial industry should evolve.
SIMILAR POSTS
19 August 2021
The Value of Non-Financial Information in SME Risk Management
The Basel CapitalAccord and the 2007 financial crisis have provided renewed impetus for lenders to research and develop adequate failure [...]
19 August 2021
Edward Altman: Where Are We in the Credit Cycle?
The Covid-19 health crisis has dramatically affected just about every aspect of the economy, including the transition from a record [...]
The Link between Default and Recovery Rates: effects on the procyclicality of regulatory capital ratios
This paper analyses the impact of various assumptions about the association between aggregate default probabilities and the loss given default [...]
