Mere knowledge of existing risk-management tools does not guarantee that all risk exposures will be adequately dealt with. Continuing innovation in the risk-management field is absolutely essential to the future smooth operation of the financial system and to the continuing maintenance of public confidence in that system.

Question

Quizplus · Accepted Answer

While knowledge of existing risk-management tools is crucial, the financial system is dynamic and constantly evolving, which means new risks emerge over time. Continuous innovation in risk management is necessary to address these new risks and maintain confidence in the financial system.

Mere Knowledge of Existing Risk-Management Tools Does Not Guarantee That