Since the European Economic Advisory Group wrote the ‘Report on the European Economy 2010,’ there have...
Regulating systemic risk
Regulators around the world are currently formulating proposals to enhance risk management at a systemic level.
With the near-collapse of global financial systems in the crisis of 2007-2008, regulators have been seeking the means to prevent any such future events. Yet financial institutions are far from homogeneous. Some companies, such as insurers, through committed long term investment strategies, can actually be a stabilising force. Regulators must take a balanced and nuanced approach to systemic risk that allows the finance industry to provide vital services to the economy and society.