This is the second issue of the Cass-Capco Institute Paper Series on Risk special edition of the Journal of Financial Transformation. The papers published in this issue cover risk issues ranging from financial to economic risk.
No one can deny that the extent and ferocity of the events of the past year or so have been unexpected. We all went from having minor fears about an economic slowdown in Western economies, with the East somewhat shielded and a manageable crisis within the financial sector, to a situation where many are talking about a potential global depression and nationalization of most of the world’s major financial institutions. Everyday we are faced with even more worrying news. Yet despite the uncertainty, now is when we need a clear head and ideas about what must be done to survive, and possibly even prosper.
This second edition of the Cass-Capco Institute Paper Series on Risk covers the whole spectrum of financial sector risks. A number of papers focus on how risk could be better understood, measured, and managed.
The challenges facing our industry have never been greater. That is why publications such as this are essential. We need to take a critical view of what went wrong, objectively identify where the shortfalls are, and ensure that we correct them for the future. These are the objectives of this issue, and have always been the ambitions of Capco and its partners.
It is only through a better understanding of the past that we can make a brighter future. We hope that we have also been able to contribute in our own way to that journey. Obviously, we still have a long way to go before we achieve what we set out to do when we established Capco. But we shall stand shoulder to shoulder with our clients in ensuring that our industry achieves the levels of efficiency that we are certain it deserves. Our hope is that you will also join us in helping shape the future of our industry.