events that have low probability but imply high risks if they occur (that have turned out to be far less unlikely than previously assumed). In this context, there is a need to create an incentive framework that adequately assesses and rewards performance over the medium to longer term.
Third, the availability of information regarding the main risks to the financial system needs to be significantly enhanced. Information should be available concerning institutions, instruments and markets that are currently unregulated, but whose risk-taking behaviour gives rise to financial stability concerns, given their potential systemic impact.