Managing the risk of a financial institution is thus seen in analogy to a game against nature (See Morris and Shin (1999)). This point of view can be perfectly sensible from the perspective of an individual bank.
As an individual institution in a big international market it may make sense to view the financial risks reflected in the volatility of financial market and asset prices as largely exogenous. For the system as a whole the risks faced by the different agents in the financial system are however endogenous.