Financial regulation and risk management: addressing risk challenges in a changing financial environment
AbstractAmongst other goals, this paper aims to address complexities and challenges faced by regulators in identifying and assessing risk, problems arising from different perceptions of risk, and solutions aimed at countering problems of risk regulation. It will approach these issues through an assessment of explanations put forward to justify the growing importance of risks, well known risk theories such as cultural theory, risk society theory and governmentality theory. In addressing the problems posed as a result of the difficulty in quantifying risks, it will consider means whereby risks can be quantified reasonably without the consequential effects which result from the dual nature of risk, that is, risks emanating from the management of institutional risks. “Socio cultural” explanations which relate to how risk is increasingly becoming embedded in organisations and institutions will also be considered as part of those factors attributable to why the financial environment has become transformed to the state in which it currently exists. A consideration of regulatory developments which have contributed to a change in the way financial regulation is carried out, an illustration of how the financial industry and the approach to financial regulation have been transformed by the rapid growth of the hedge funds industry, will also constitute focal points of the paper.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32409.
Date of creation: Jul 2006
Date of revision: Jul 2011
risk; regulation; banks; regulators; audit; financial; hedge funds; governmentality theory; risk society; cultural theory; accountability;
Other versions of this item:
- Ojo, Marianne, 2009. "Financial Regulation and Risk Management: Addressing Risk Challenges in a Changing Financial Environment," MPRA Paper 14503, University Library of Munich, Germany.
- Ojo, Marianne, 2009. "Financial regulation and risk management: addressing risk challenges in a changing financial environment," MPRA Paper 27424, University Library of Munich, Germany, revised 14 Dec 2010.
- K2 - Law and Economics - - Regulation and Business Law
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- G3 - Financial Economics - - Corporate Finance and Governance
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baldwin, Robert & Cave, Martin, 1999.
"Understanding Regulation: Theory, Strategy, and Practice,"
Oxford University Press, number 9780198774389.
- Baldwin, Robert & Cave, Martin & Lodge, Martin, 2011. "Understanding Regulation: Theory, Strategy, and Practice," OUP Catalogue, Oxford University Press, edition 2, number 9780199576098.
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