It is important that reforms in this regard be done on an industry-wide basis, so that improved risk management and compensation practices by some systemically important firms are not undermined by the unsound practices of others.
In response to the recurrent crises in recent years the Financial Stability Forum has been set up. It is a platform of collaboration between international supervisory authorities and the Bretton Woods institutions; a platform that opens up the opportunity to detect crises at an early stage and to strengthen global cooperation.