March 21, 2023

Global Banking Turmoil and the Illusion of Control. Talking with Jon Danielsson, Professor of Finance at the London School of Economics and Director of the Systemic Risk Center.

Global Banking Turmoil and the Illusion of Control. Talking with Jon Danielsson, Professor of Finance at the London School of Economics and Director of  the Systemic Risk Center.

The global banking crisis and the failure of Silicon Valley Bank as well as Credit Suisse was worsened by a lack of diversity - shock absorbers - in the financial system. Professor Danielsson argues for a new approach to risk management.

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Professor Danielsson discusses global banking turmoil and the role of Risk Management in banks. His new book, Illusion of Control, takes a fresh look at managing risk. Diversification of banks' business models should provide shock absorbers to financial markets, helping to lessen the impact of bank failures on the economy.

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