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January 10, 2023 | Report
This multipart series is intended to help executives better mitigate their risks and execute their strategies; it highlights core topics where errors can create operational and franchise risks for even the best-run firms.
The first pitfall to avoid arises from waiting for regulators to define risks. Regulation is one of the most important and difficult market functions, and changes often come slowly or in response to a crisis. Firms should therefore identify and manage their risks ahead of new regulations.
The second pitfall to avoid is missing, ignoring, and/or misdiagnosing dislocations in financial markets. Executives can defend their firms against the most extreme market risk scenarios by considering rare but severe black and grey swan events, and building adequate financial and institutional buffers to weather them.
From Outsourcing Risk Management to DIY Threat Monitoring and Robustness
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