This entails taking a systemic perspective of how risk is distributed in the financial system, addressing interlinkages between institutions, markets and instruments as well as monitoring how systemic risk evolves over time, taking into account the effects of collective behaviour in the financial system as a whole.
Systemic risk has clearly become also in light of the crisis experience an issue that has to be addressed by the public authorities as it extends beyond the boundaries  BIS Review 71/2009  1  of individual financial institutions and impacts on the financial system as a whole.