My focus has been on the perils of risk management when periodic crises - characterized by sharply rising risk premiums - undermine risk-management structures that fail to address them. During a financial crisis, risk aversion rises dramatically, and deliberate trading strategies are replaced by rising fear-induced disengagement from market activity.
It is interesting to note that although the take-up of cash is shrinking, the volume of cash in circulation has increased by an average of 6% each year over the past ten years. That's because cash isn't used just for payments. It also serves as a store of value – and increasingly so.