All of us are still adjusting to this change and its implications. It is widely held that risk was under-priced for some years before then. That is to say, investors demanded very little risk compensation in their expected returns – perhaps in some cases because they didn’t understand the risks.
Examples worth noting are the working hours accounts that have now become commonplace in many sectors, the pay corridors in the chemical industry, and the renegotiation of the traditional Christmas bonus in some sectors. However, further steps are imperative. This applies primarily to the favourability principle, which should be interpreted more widely to include measures that safeguard existing jobs.