This article develops a basic typological framework for understanding and analyzing financial risk from a political … economy perspective. It is motivated by growing awareness of the contemporary significance of financial risk and by the fact … that the political-economic literature on such risk currently lacks a workable heuristic. The framework distinguishes …

increases in risk taking. Where we can separately identify changes in risk-independent performance and risk taking, our … increases in risk taking. These effects are concentrated among those closest to the margin of elimination and among lower …