Not preparing for risk is the biggest problem facing businesses and governments, according to Fed member

Mark Olson, member of the board of governors at the US Federal Reserve, has spoken about enterprise-wide compliance-risk management. In his speech, Olson addressed two main changes to the global financial system, including the financial sector's increasing reliance on risk-transfer strategies and the array of new products being offered to customers.

Olson said the biggest risk facing businesses and governments today is not preparing for how the world will change over the next five years, but new technologies will enable firms to overcome problems and challenges.

Olson stated that “Preparation is the easy answer, but foresight and discipline are also needed. At a fundamental level, managers need to make sure that their organisations have in place the risk management policies, processes, and technologies to properly measure, monitor, and