Management of Financial Stability Risk
A record number of organizations -governmental, commercial/ nongovernmental — are currently dealing with the management of financial stability risk, especially in the sector of economies and financial markets. The issue has become so popular nowadays that it might seem boring and overrated. On the contrary, it is still a very underdefined process. It is difficult to successfully manage something, if in fact one does not exactly know what it is. There is no consistent and generally accepted definition of risk. Acts of law do not provide a clear statutory definition of what risk involved in financial stability is either. The definitions that have been provided are very general in nature. There is even a problem with developing an accurate definition of such seemingly prosaic risk as legal risk.
KeywordsCentral Bank Credit Risk Systemic Risk European Central Bank Liquidity Risk
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