That is what is happening right now with the market participants assessing the reform agenda in the US, and probably will happen when the 3/7  BIS central bankers' speeches  Brexit negotiations are underway. If some tail risk scenario were to materialise, however, markets might reassess valuations a lot more forcefully, and prices of risky assets might then adjust accordingly. 3.
These comprised: (i) the full disclosure of credit institutions’ risk exposures in their mid-year reporting, using the leading disclosure practices set out in the FSF’s report; (ii) immediate action by the International Accounting Standards Board (IASB) to improve accounting and disclosure standards for off-balance sheet items and to enhance guidance on fair value accounting in times of stress; (iii) the enhancement of risk management practices of financial institutions, including stress testing and strengthening capital positions, when needed; (iv) the revision of liquidity risk management guidelines by the Basel Committee on Banking Supervision; and (v) the revision of the code of conduct for rating agencies by the IOSCO.