Financial crises are nothing new. What is unique and sobering is the far greater speed with which the current situation has evolved from a weakening of the U.S. housing market into a full-blown, global economic meltdown. Also new this time is how quickly the fallout spread beyond the financial sector into all areas of the economy. Advanced communications and information technologies are creating an era of greater risk with more serious and far-reaching consequences when compared with even the recent past. The increased speed, complexity and interconnectedness of global markets today make them more vulnerable to correlated risks that can combine to magnify liability. These new time and impact factors must be included in any future risk analyses.
Keywords: Enterprise Risk Management
