The neglect of risk and its consequences One of the main reasons for the mess we are in now has been a general misperception of risk. In the financial industries, many believed that innovations like structured asset-backed securities would improve the diversification of risks and thereby help to reduce the markets’ vulnerability to adverse shocks.
Ben S Bernanke: Brief remarks – the Fed’s efforts with respect to diversity Speech by Mr Ben S Bernanke, Chairman of the Board of Governors of the US Federal Reserve System, at the Congressional Black Caucus Foundation's Annual Legislative Conference, Washington DC, 25 September 2009. *  *  *  Good morning.