Without wishing to devote too much time to technical details of index construction, allow me to highlight some of the issues.3 Technological progress has resulted in the creation of products such as smartphones and internet service providers that had no equivalent in the past.
As the SSG report indicates, some firms had a poor understanding of the risks inherent in certain complex products or failed to recognize that certain activities contained latent risks that could be manifest in unexpected concentrations of risk exposures when market turbulence arose.