Regulators generally have tried to address the problems posed by the excessive risk-taking of Systemically Important Financial Institutions (SIFIs) by placing restrictions on the activities in which SIFIs engage. However, the complexity of these institutions makes such attempts necessarily...

Policymakers around the world, including in Europe, increasingly display a tendency to embed risk management into law, for example by mandating risk governance best practices or by requiring firms to have risk management functions in place. Most recently, the European Commission issued a...