The financial products being created didn t manage risk they enhanced risk.

The point at which credit risk becomes exchange rate redenomination risk is ambiguous.

As a result, financial markets, which are supposed to manage risk and allocate capital efficiently, created risk and misallocated wildly.

Credit risk is best hedged through diversification across uncorrelated credits.

There are many reasons and ways to manage trade credit terms for the benefit of a business.

It concluded with a call for action to manage climate risk and capture opportunities.

Credit risk in the mortgage market is being assumed by the government, and market risk by the Fed.

But, if more risk builds up through continued expansion of shadow credit, this risk buffer may become inadequate.

(c) The requirement for international development partners able to manage risk, operate and produce results quickly and innovatively in high risk, insecure environments

The aggressive and comprehensive intervention that Keynesians claimed was needed to manage aggregate demand, and that Minskyites claimed was needed to manage financial risk, was entirely unwarranted.

While credit expansion can offset this to some degree, increased production based on credit expansion inevitably leads to large scale financial risk.

Indeed, a chain of financial intermediaries now earn fees without bearing the credit risk.

Finally, liquidity risk should be properly assessed in risk management models, and both banks and other financial institutions should better price and manage such risk most financial crises are triggered by maturity mismatches.

This risk was highlighted by the recent downgrade of Italy s credit rating by Standard Poor s.

In the past, banks kept loans and mortgages on their books, retaining the credit risk.

Lack of equity capital, in turn, made risk averse shareholders hire gamblers to manage their limited liability investment companies.

They range from subdued bank lending to unusually high risk aversion, and from discredited credit vehicles to the withdrawal of some institutions from credit intermediation altogether.

With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity.

This would, in its turn, allow banks and other lenders to better assess enterprise risks using modern ICT based techniques for credit risk assessment and credit scoring.

Similarly, positioning the IMF as a general risk insurer by introducing precautionary credit lines above normal access limits would be compatible neither with its mission to provide financial assistance on deliberately non risk adjusted terms nor with the current system of refinancing short term Fund credit through risk free official reserves.

This package of measures allows Customs Administrations to manage risk effectively and efficiently using advance electronic information and intelligence methodologies.

Even if this sounds unfair, it is logical to expect rating agencies, which had been lax in evaluating credit risk, now to be rigorous in assessing all forms of risk, including sovereign risk.

In other words, the Fed will use regulatory instruments to control credit growth, risk taking, and leverage.

Clarifying ultimate responsibility for credit quality and risk would also reduce intermediation costs by eliminating the need to resort to informal channels, such as credit guarantee and trust companies.

Innovative financial instruments such as derivatives and credit default swaps enabled the distribution of risk throughout the economy.

This would enable the PBC to manage domestic demand by allowing interest rates to rise in order to rein in credit growth and deter reckless investment.

Investors thus assumed that they did not need to assess the credit risk of eurozone countries (national) public debt.

Big multinational banks and mortgage lenders have moved into markets across Latin America, providing financial services that allow lenders to better manage risk.

The immediate causes are well known. They range from subdued bank lending to unusually high risk aversion, and from discredited credit vehicles to the withdrawal of some institutions from credit intermediation altogether.

Like banks, all these financial institutions are subject to liquidity or rollover risk the risk of going belly up if their creditors do not rollover their short term credit lines.

Only with preemptive policies designed to manage risk better can emerging Asian countries protect economic growth from the threat of current and future crises.

There is now a serious risk of a systemic meltdown in US financial markets as huge credit and asset bubbles collapse.

Germany will look like a better credit risk, thereby allowing it to fund its current budget deficits more easily and cheaply.

In the past, weather insurance could not manage a farmer s risk effectively because we could not measure well enough the effects of weather on crops.

Finance, at its best, does not merely manage risk, but also acts as the steward of society s assets and an advocate of its deepest goals.

Analytical skills, business knowledge, and understanding of human behavior and the vagaries of information systems are required to design and manage programs that control risk .

In paragraph 219 of the report, UNDP agreed with the Board's recommendation that it establish mechanisms needed to manage risk in terms of best practices.

Meanwhile, prolonged low interest rates contributed to a chase for yield in the financial sector that resulted in disregard of credit risk.

Insurance companies and pension funds, on the other hand, have limited capacity for credit risk, but more for market and liquidity risks.

This framework provides a rationale for policy intervention in asset markets, and also has important implications for how regulators should measure and manage systemic financial risk.

In most developing countries, financial service providers are not yet in a position to use modern credit risk management techniques to assess borrowers' risk and thus competitively provide capital, particularly trade finance, to enterprises.

Moreover, financial innovation and globalization allow markets to spread risk more effectively than ever before, placing it in the hands of those who can best manage it.

But, as local government debt grows, Chinese banks have begun to regard real estate and local financing platforms as a major credit risk.

Credit rating agencies, institutional investors, and asset managers are encouraged to see how such factors can be incorporated into their own risk models.

Banks and other financial firms borrow short increasingly in recent years from the commercial securities market, not deposits and lend long at higher interest rates, taking on both credit risk (of default) and interest rate risk.