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Lessons from the Current Financial Crisis. A Risk Management Approach

Author

Listed:
  • Gheorghe VOINEA

    (“A.I. Cuza” University, Iasi, Romania)

  • Sorin Gabriel ANTON

    (“A.I. Cuza” University, Iasi, Romania)

Abstract

In the last twenty years, the financial risk management has gained an important role for the companies and financial institutions. Financial innovations have improved the efficiency of risk management process, but at the same time, they have imposed new challenges for market participants and their supervisors in the areas of systemic risk. An important feature of periods of financial innovation is that the rapid increase in new products and changes in the structure of those markets can outpace the development of the risk management and processing and settlement infrastructure. The current financial crisis has revealed significant weaknesses in risk management practices across the financial services industry. This paper analyses the main lessons that can be drawn from the current financial crisis in order to improve the financial risk management.

Suggested Citation

  • Gheorghe VOINEA & Sorin Gabriel ANTON, 2009. "Lessons from the Current Financial Crisis. A Risk Management Approach," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 3, pages 139-147, May.
    • Handle: RePEc:aic:revebs:y:2009:i:3:voineag
    as

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    References listed on IDEAS

    as
    1. Daianu, Daniel & Lungu, Laurian, 2008. "Why Is This Financial Crisis Occurring? How To Respond To It?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(4), pages 59-87, December.
    2. Fred R. Kaen, 2005. "Risk Management, Corporate Governance and the Public Corporation," Springer Books, in: Michael Frenkel & Markus Rudolf & Ulrich Hommel (ed.), Risk Management, edition 0, pages 423-436, Springer.
    3. Michael S. Gibson, 2007. "Credit derivatives and risk management," Finance and Economics Discussion Series 2007-47, Board of Governors of the Federal Reserve System (U.S.).
    4. Michael S. Gibson, 2007. "Credit derivatives and risk management," Economic Review, Federal Reserve Bank of Atlanta, vol. 92(Q4), pages 25-41.
    5. Mr. Manmohan Singh & Miguel A. Segoviano, 2008. "Counterparty Risk in the Over-The-Counter Derivatives Market," IMF Working Papers 2008/258, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mitra, Sovan & Karathanasopoulos, Andreas & Sermpinis, Georgios & Dunis, Christian & Hood, John, 2015. "Operational risk: Emerging markets, sectors and measurement," European Journal of Operational Research, Elsevier, vol. 241(1), pages 122-132.
    2. NUCU, Anca Elena, 2011. "Managementul riscului de creditare: realizari actuale, analiza critica, sugestii [Credit risk management: current achievements, critical analysis, suggestions]," MPRA Paper 27932, University Library of Munich, Germany.
    3. Eckhard Hein & Daniel Detzer & Nina Dodig (ed.), 2015. "The Demise of Finance-dominated Capitalism," Books, Edward Elgar Publishing, number 16281.

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    More about this item

    Keywords

    risk management; financial crisis; lessons; credit derivatives; financial innovation; systemic risk;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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