This is of particular importance, since a thorough understanding of the underlying developments that contributed  1]  I am very grateful to Fabio Recine and Valia Rentzou for their valuable contributions. BIS Review 128/2008  1  to the emergence of the financial markets turmoil or accentuated its impact constitutes the basis for the definition of proper guidance by policy makers.
In this respect, I would like to make reference to four major areas that have been identified by the public authorities in charge of maintaining financial stability as deserving special attention: First, the turmoil underscored the increased exposures of financial institutions to complex financial instruments, which was not always accompanied by a commensurate development of risk management systems capable of assessing and managing properly (and through the cycle) their inherent risks.