Cyber-security risks and the increasing awareness, occurrence, and impact of cyber incidents confronting corporations are a rapidly growing concern to investors, senior executives, and policy setters. Driving this concern are unprecedented corporate dependencies on digital technologies which are growing at an exponential rate. Indeed, the impact of digital technologies on today's corporations are beyond what would have imagined at the turn of the 21st century, let alone two or three decades ago. Unfortunately, determining the actual, let alone potential, cyber security risks an impact of cyber incidents confronting corporations is far from an exact science.

Simon Johnson, a former chief economist for the International Monetary Fund and author of 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown, says the recently passed Dodd-Frank Financial Reform Act does little to prevent the biggest financial risk of our time -- banks that are becoming "too big to save," either because potential losses could overwhelm government resources, or the public will refuse to sanction another large bailout.

The Economist on America's banking reforms, the risk of deflation in advanced economies and China's growth.

Identify Risks by Source: Defining risks by outcome instead of by source often confuses risk scenario development and results in poor decision-making. Categorize Risks at the Same Level of Granularity: Risks can be missed or wrongly assessed if they are categorized at too high or too low a level.

The consequences of banks' risk taking behaviour will be felt by the public finances of many countries for at least another generation. Risk taking behaviour is the lifeblood of financial markets. How can, and should, it be managed? Julia Black is professor of law at LSE. Charles Goodhart is professor emeritus of banking and finance at LSE. 

Este podcast forma parte de la serie "Financial Markets 2.0: Strategies for market survival" producida por BearingPoint. Brian Hart, Managing Director de BearingPoint explica la importancia de una plataforma adecuada de gestión del riesgo y del rendimiento, para enfrentar la crisis crediticia actual.

En este podcast, Adam Litke, Managing Director y Responsable de Riesgo de Mercado de Wachovia charla sobre el problema del riesgo de la contraparte en derivados de crédito, planteando diferentes soluciones.

Paul Danik, director of global field marketing habla con Sandeep Vishru, managing director of financial services and risk management de BearingPoint, sobre el working paper que su equipo acaba de publicar sobre la gestión del riesgo en procesos de externalización, "Managing risk to improve offshoring results".