It cannot be turned off once begun and could present its own problems during periods of generalized stress by creating additional pressures that authorities would prefer to avoid. In short, it can be a mixed blessing. As policymakers, we need to balance the risk it presents with the benefits it can provide in curbing excessive risk taking and preventing problems altogether.
Conclusion In closing, we have seen important gains in risk management throughout this decade and substantial innovation in financial markets and products. These changes bode well, I believe, for distributing risks more efficiently and producing further gains in economic growth in the years to come.