Modern risk management problems
The modern risk management is currently going through an ideological crisis showing the following symptoms:
- failure to understand the nature of the majority of risks, eclecticism of methods and concepts, in both technologies and standards of risk management,
- disregard of the interaction between operational risk, credit risk and market risk, lack of continuity in management processes, lack of common rating scales for the assessment of various risks,
- inadequate tools for operational risk assessment,
- the virtual absence of portfolio approach to operational risk management,
- difficulties with forecasting stress and crisis scenarios generation, difficulties with explaining the nature of chaotic market processes,
- the problem of the recently increased relevance of some previously uncommon factors, of which the following ones are thought by the author to be most important : cyber-terrorism and industrial terrorism, influence of social networks, High Frequency Trading (HFT), threat of antibiotic resistance.