These advances have also made possible the development of important new markets and products that have become widespread and essential to the risk management practices of both financial and nonfinancial firms. They have also made the practice of risk management far more sophisticated and complex.
The application of mathematics and statistics, the collection and compilation of large amounts of data, and the analysis and characterization of the risks embedded in business activities today are much different - and in many ways more challenging - than they were not long ago.