Risk landscape 10 years on: The end of systemic risk or a new beginning?
Abstract
Risk professionals currently put systemic economic risk at its lowest level since 2008, potentially owing to systemic regulatory reform and monetary policy, which have remediated issues with consumer and bank sector balance sheets. In spite of this progress, there is an argument to be made that systemic risk is actually increasing, but driven today by the public sector through high-risk monetary and public policy. The changing source of potential future systemic risks brings into question the potential effectiveness of systemic regulation. Fortunately, best risk management practices remain the same regardless of the source of the next systemic crisis, including stress testing, defining systemic risk appetite and building resilience.
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Author's Biography
Thomas C. Wilson is Chief Risk Officer of Allianz SE. He has held risk and finance positions in Dresdner Bank, ING and Swiss Re, and led the risk practices of Oliver Wyman & Company and McKinsey & Company. He is the author of Value and Capital Management (Wiley Finance Series), also published in Chinese, Korean and Japanese (forthcoming). He holds a BSc in business from the University of California Berkeley and a PhD in economics from Stanford.
Citation
Wilson, Thomas C. (2019, March 1). Risk landscape 10 years on: The end of systemic risk or a new beginning?. In the Journal of Risk Management in Financial Institutions, Volume 12, Issue 2. https://doi.org/10.69554/VLIO3255.
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