During two decades of constipated economics and politics, the deadening sense grew that Japan had lost its appetite for risk, whether entrepreneurial derring-do or even, in the context of a population that had begun to shrink, the risk of picking the wrong mate.
It also flags additional investments in customer service — saying it will beef up its in-house team to 8,000 staff by the end of the year up from 5,000 currently, although it has also leaned on 10,000 subcontracted customers service reps — so is evidently seeking to bring more of that operation in-house (presumably to shrink the risk of any similarly fatal complaint handling errors in future).
Calling this the greatest structural challenge facing the financial system, he said we must shrink the risks these companies pose, "whether by reducing their size, curtailing their interconnections or limiting their activities".
Not dealing with this problem will only mean the NPLs could increase by another €50 billion in the next year (the official total NPL number is €113 billion, the actual number is probably closer to €135 billion), the unemployment will be higher, the economy will keep shrinking and the risk of civil unrest will be heightened.
Ergo that human trust layer helps shrink the associated risk.
Through these two random terms the BYM model shrinks the relative risk estimates both toward the local and the general mean.
It's better if it gets air dried because putting it in the dryer will have the risk of shrinking the fleece.
Mr. Reed said that the company expected to reduce risk by shrinking the percentage of investments in the stocks of large American companies, and investing a greater percentage of the portfolio in what he called "noncorrelated assets".
It also reduces macro-economic risks by shrinking the government's burden of servicing the national debt.
Fears that the economy would suffer a "jobless recovery" similar to that of the first Bush administration are no longer hypothetical: over the past year G.D.P. has grown, but employment has continued to shrink, and the risk that the U.S. will slide into a Japanese-style pattern of slow growth and deflation no longer seems remote.
