At the same time, institutions manage risk on an integrated basis and understanding and dealing with the effect of financial instability and the feedback of their actions on markets and other institutions will call for an integrated overview.
No institution can be “too big to fail.” Handling the failure of a large, complex organization - imposing the costs of failure on management, shareholders, and uninsured creditors while minimizing the  4  BIS Review 3/2005  effects on the wider economy - will certainly be complicated.