The future of financial risk management

The financial crisis of 2008 has revealed a number of facts that we now acknowledge. We now know that liquidity matters very much, that the future may be unpredictable, that non-transparency, complexity,and ambiguity, combined with greed can lead to “management risks” that can derail financial sustainability, and that financial models are not efficient. These revelations have increased our awareness that our financial expectations can and do falter. This renewed awareness may alter the financial regulatory environment,financial markets in general, our financial attitudes and beliefs,and, by extension, the future of financial risk management. In light of these events, the purpose of this paper is to assess the future of financial risk management and highlight essential concerns that may be relevant in meeting the challenges of a financial world increasingly in turmoil.