"It's very different from Lehman because you don't have the systemic financial system risk, but it would be equally stupid," Mr. Barbera said.
In Canada's banking system, risk management is placed at the top of the corporate agenda.
Bruce Radloff, OnStar's chief technology officer, pointed out that owners who tamper with the system risk voiding the warranty on the OnStar unit -- and more critically, the warranty on the entire car.
(Lord Turner, the FSA's new chairman—who has admitted that financial regulators, among others, missed "an increase in total system risk"—may be a happy exception).
The legislative intent of Dodd-Frank is most definitely to identify and limit system risk wherever it occurs, including outside the banking system.
The legislation would create a system risk council comprising the most senior government regulators to try to identify potential dangers in the financial system.
Incentives are critical to mitigating system risk.
Traditionally, only historical failure statistics are employed in power system risk assessment, however the overall system risk is also related to component operational conditions.
A new method for transmission system risk assessment considering component monitoring data is proposed.
The method comprises of three parts: component evaluation, index transition and system risk evaluation.
The basic procedure of power transmission system risk assessment is shown in Fig. 1 [1].
