
Can risk managers take action against sovereign meltdown?
The discipline of risk management is not suited to deal with systemic crises

A central function of modern risk management involves placing a value on uncertainty. By establishing the risk rather than the uncertainty facing an institution business leaders can devise strategies to pursue growth while being mindful of the risk tolerances set by the owners of an organisation.
This process tends to work best when there is a large set of observable data points over a long time horizon. But as the events of the financial crisis of 2007/08 demonstrated, establishing the true
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