It is important to recognize that risk-taking is an integral part of many financial institutions’ business models. This is a crucial difference to some domains that we have examined. Also, we are well aware that outside domains may not provide ready guidance to all aspects of financial services (see Appendix). This report concentrates on stylized patterns and lessons that are potentially transferable to the financial sector while acknowledging that no domain is perfect at managing risk or indeed fully comparable to financial services. We further acknowledge that some of our commentary on the industry is by default overly generalized for reasons of brevity. We do.
