Second, we must be cautious in assuming that more diversified and larger firms are inherently less risky. One of the ongoing challenges in the emerging world of high tech finance is risk management.
As one should expect, the intensity of this scrutiny was stepped up during the crisis.1  The role of parliaments in fostering a better functioning EMU The ECB’s experience shows how a well-functioning EMU requires strong institutions, strong rules and strong accountability. They are complementary and mutually reinforcing in pursuing input and output legitimacy, i.e. ensuring that institutions function smoothly and perform well.