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 May 2021
Managing Credit Risk For Retail Low-Default Portfolios
Low-Default Portfolios (LDPs) form a significant and substantial portion of retail assets at major financial institutions. However, in the literature, [...]
Estimating Conservative Loss Given Default
The new Basel Capital Accord (Basel II) is going to be embedded in the risk management practices at many financial [...]
11 January 2021
Mastering Risk Management in the Digital Payments Space
Merchant acquirers are faced with a challenging environment and will have to face further risks. The credit risk process needs [...]
