Running a business has always been a matter of risk taking. The recent crisis has reinforced the necessity of managing risk, and has enhanced public expectations for economic actors to be more proactive in risk control. What’s new with the 8th EU Company Law Directive is that there is a clear responsibility given to boards of directors and to their audit committees. Senior management is expected to be involved in risk management and risk taking. Directors have to give direction depending on the risk appetite of shareholders. A good risk management system is like management systems on a racing car - they help it to go faster, further and more safely.
Posted on Monday, January 10, 2011
The recent crisis has been considered as the result of a systemic risk in the financial markets. The European Central Bank (ECB) has been targeted by the de Larosière Report to set up a special entity to track this type of risk and this focus on systemic risk is not unique. Regulatory authorities in USA and Canada are also asking themselves who should track this systemic risk. But what is systemic risk?
Posted on Tuesday, October 12, 2010