Recommended articles: Risk and Finance
RISK: Bankers’ liability and risk taking. In order to protect the financial system from excessive risk-taking, many argue that bank managers need to have more personal liability. However, whether the liability of bank managers has a significant effect on risk-taking is an open question. This column studies a unique historical episode in which similar bankers, operating in similar institutional and economic environments, faced different degrees of personal liability, depending on the timing of their marriages, and finds that limited liability induced bankers to take more risks ( VOX ). Basel III monitoring results published by the Basel Committee ( BIS ). Value and resilience through better risk management. Although the risk environment is growing more perilous and costly, leading companies are blazing a path to resilience and value by embedding strategic risk capabilities throughout the organization ( McKinsey ). Estimating Cyber Risk for the Financial Sector ( IMF B