Finally, financial firms, credit-rating agencies and financial advisers need to do a better job of communicating the suitability of products, and their inherent risks, to their clients. This requires better plain language disclosure. It also requires improved financial literacy and improvements in consumer protection.
This is a shared responsibility of the private and public sectors – and we both have much to learn about which methods are the most effective. Public policy priorities Sound risk management makes the best of the situation at hand; mitigating risk improves the situation. And there is much public policy can do.