Description: The crisis has spread due to a systematic failure of the regulatory system. Over the last 20 years, regulations that fostered market stability were eliminated and new financial instruments were allowed to propagate without any real oversight. Instead of bailing out weak financial firms, we should be liquidating them. All doubtful assets need to be written-downs. We need accurate and transparent accounting. Government can help in this effort by cleaning up our accounting system. But it needs to stop being an investor propping up those that should be in the morgue. It needs to conservatively regulate all financial instruments. It should foster liquidity and stoke demand.

Description: In this article, the section chairperson talks about some challenges that are presenting the actuarial profession, and Risk Management professionals and how to turn them into new opportunities for business.

Description: This article discusses the impact of increasing activity with respect to Solvency II in the United States.

Description: The author summarizes certain presentations at the ERM II Systemic Risk Workshop. The key objective of the workshop was to develop recommendations that could serve as input to regulators, legislators and other policy makers in designing and implementing systemic risk regulation that can prevent future financial crises.

Description: This article discusses how complex models can provide a false sense of security, hiding the evidence that the entire range of indications may hinge on one or two key assumptions.

Description: This article discusses unauthorized trading scandals — commonly referred to as “rogue trading”.

Description: Strategic Risk Management was given lower priority in a recent survey of ERM Objectives. This article tells how the author believes that recent events have caused many to shift to a more short term focus and in the future there will be a shift back to a priority for the longer term view that stands behind Strategic Risk Management when the environment settles down and things again seem to be more predictable.

Description: Recurring column that lists recent publications in risk management of note to readers.

Description: Recurring column that lists recent publications in risk management of note to readers.

Description: Recent events and commentary from a member of the JRMS council.