Whether it is understanding the limits of VaR or developing enhanced methods for systemic risk reporting, risk knowledge has never been more essential in financial services. From reducing risk in banking to driving Solvency II changes, risk governance is central.
Any company that cannot imagine the future won't be around to enjoy it.
Many in the corporate sector have looked at the financial crisis and thought, "but that's them; it doesn't hold lessons outside financial services." We beg to differ.
The limitations of corporate risk practice are clear and periodically visible; never more so than in the Gulf of Mexico. And at corporate level, the story is even more stark. The time has come to take a new and more critical look at how corporate business approaches risk.
A new Government is making changes to the public sector the like of which have not been seen in a generation. Understanding risk better will be critical.
As the balance of responsibilities between individuals and the state changes, risk will take a central position in understanding the implications of policy. But few government agencies are well positioned to analyse risk outside (and often inside) their walls.