Addressing Risk Challenges in a Changing Financial Environment:the Need for Greater Accountability in Financial Regulation and Risk Management

摘要

The need for continuous monitoring and regulation is particularly attributed to, and justifiedudby, the inevitable presence of risks and uncertainty – both in terms of certain externalities andudindeterminacies which are capable of being reasonably quantified and those which are not.udAmongst other goals, this paper aims to address complexities and challenges faced byudregulators in identifying and assessing risk, problems arising from different perceptions ofudrisk, and solutions aimed at countering problems of risk regulation. It will approach theseudissues through an assessment of explanations put forward to justify the growing importance ofudrisks, well known risk theories such as cultural theory, risk society theory andudgovernmentality theory. “Socio cultural” explanations which relate to how risk is increasinglyudbecoming embedded in organisations and institutions will also be considered as part of thoseudfactors attributable to why the financial environment has become transformed to the state inudwhich it currently exists.udA consideration of regulatory developments which have contributed to a change in the wayudfinancial regulation is carried out, as well as developments which have contributed to the deudformalisation of rules and a corresponding “loss of certainty”, will also constitute focal pointsudof the paper. To what extent are risks capable of being quantified? Who is able to assist withudsuch quantification – and why has it become necessary to introduce other regulatory actorsudand greater measures aimed at fostering corporate governance and accountability into theudregulatory process? These questions constitute some of the issues which this paper aims toudaddress.