Capital rules also temper risk-taking.
Other parts of Dodd-Frank try to temper risk in more subtle ways.
Fearing that another financial crisis is brewing, regulators and shareholders are pushing financial firms to temper risk — all of which is weighing on operations.
The financial firm has highlighted the group, which encompasses nearly 17,200 financial advisers and $1.7 trillion of client assets, as a pillar of its turnaround effort to reshape its strategy and to temper risk in the wake of the financial crisis.
"First of all, diversification alone is no longer sufficient to temper risk.
In addition, many fund managers have huge personal stakes in the funds, which tempers risk-taking.
He also suggested that in announcing a timeline for tapering last month, the Fed had succeeded in tempering risk-taking in financial markets.
After reporting $3.7 billion of net inflows in the three months through June, the company recorded net outflows of $2.7 billion in the subsequent quarter, as investors tempered risk in their portfolios.
Michael Hewson, senior market analyst at CMC Markets, said: Growth concerns have also tempered risk appetite after France cut its growth forecasts for 2014, as well as announcing it would miss its deficit targets, while ECB board member Benoit Coure warned that Greece could well need two more bailouts to keep it afloat.
We tend to use cash, or short-term bonds, as a means of tempering risk.
"Shiller describes six fundamental ideas for using modern information technology and advanced financial theory to temper basic risks that have been ignored by risk management institutions -- risks to the value of our jobs and our homes, to the vitality of our communities, and to the very stability of national economies", says the Princeton University Press.
