But poorly understood or insufficiently controlled risk-taking is clearly undesirable, given the associated negative consequences of uncontrolled failure. No one in Ireland should need reminding of the costs of systemic failure. So the work of regulation and supervision is complex.
While it must be evidence-based and outcomes focused, it does require finely-balanced judgement to operate in the grey areas 1/5  BIS central bankers' speeches  between the two ends of this spectrum of risk. Insurers must operate in line with the domestic and international regulatory regime.