LESSONS FROM THE CURRENT FINANCIAL CRISIS. A RISK MANAGEMENT APPROACH Cover Image

LESSONS FROM THE CURRENT FINANCIAL CRISIS. A RISK MANAGEMENT APPROACH
LESSONS FROM THE CURRENT FINANCIAL CRISIS. A RISK MANAGEMENT APPROACH

Author(s): Gheorghe Voinea, Sorin Gabriel Anton
Subject(s): Economy
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: risk management; financial crisis; lessons; credit derivatives; financial innovation; systemic risk

Summary/Abstract: In the last twenty years, the financial risk management has gained an important role for the companies and financial institutions. Financial innovations have improved the efficiency of risk management process, but at the same time, they have imposed new challenges for market participants and their supervisors in the areas of systemic risk. An important feature of periods of financial innovation is that the rapid increase in new products and changes in the structure of those markets can outpace the development of the risk management and processing and settlement infrastructure. The current financial crisis has revealed significant weaknesses in risk management practices across the financial services industry. This paper analyses the main lessons that can be drawn from the current financial crisis in order to improve the financial risk management.

  • Issue Year: 2009
  • Issue No: 3
  • Page Range: 139-147
  • Page Count: 9
  • Language: English