Risk Management Challenges after the Financial Crisis
Author's Department
Management Department
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https://doi.org/10.1111/j.1468-0300.2013.12011.x
Document Type
Research Article
Publication Title
Economic Notes
Publication Date
11-1-2013
doi
10.1111/j.1468-0300.2013.12011.x
Abstract
The recent financial crisis highlighted the need for risk measures that deal adequately with extreme events. In the modern complex financial world, risk measures can only be effective if they take into consideration the endogeneity of risk. Endogenous risk is an inherent characteristic of the modern financial system. The crisis has also highlighted the considerable changes in investors' attitude towards risk under changing market conditions. These developments have cast doubt on the role of traditional elements of risk management theory: prices, probabilities and preferences. The paper presents a non-technical summary of the main challenges for effective risk management in the modern complex financial world. © 2013 The Authors.
First Page
285
Last Page
320
Recommended Citation
APA Citation
Mertzanis, C.
(2013). Risk Management Challenges after the Financial Crisis. Economic Notes, 42(3), 285–320.
10.1111/j.1468-0300.2013.12011.x
https://fount.aucegypt.edu/faculty_journal_articles/752
MLA Citation
Mertzanis, Charilaos
"Risk Management Challenges after the Financial Crisis." Economic Notes, vol. 42,no. 3, 2013, pp. 285–320.
https://fount.aucegypt.edu/faculty_journal_articles/752