The financial crisis has, to put it mildly, seriously challenged our traditional approach to risk management. Consequently, a number of individuals and institutions have advanced ideas for improving not only the analytical framework, but also the status and relevance of risk management. This report, not only reacts to the most recent episode (although we indeed reference many relevant examples), it also attempts to address a deeper problem: the demonstrated inability of the global financial system to constructively mitigate and deal with financial crises. Over the past 40 years, the IMF has counted 88 banking crises. Hence, a fundamental question presents itself: Can the financial services.
