Skip to content

Customer Quote by Blythe Masters

“Unfortunately, tools that transfer risk can also increase systemic risk if major counterparties fail to manage their own risk exposures properly.” quote by Blythe Masters
Download Open image
“Unfortunately, tools that transfer risk can also increase systemic risk if major counterparties fail to manage their own risk exposures properly.”

Blythe Masters

About This Quote

Source Speech: Financial Stability Forum, 2015

Risk transfer mechanisms can amplify systemic danger if counterparties mismanage exposure.

In simple terms: Risk sharing can increase overall risk.

Key Takeaway

Monitor counterpart risk health.

Themes

risk systemic risk counterparty financial stability

Mood

concerned analytical

Type

policy technical

When to use this quote

  • banking
  • insurance
  • derivatives markets
  • regulatory oversight

Key Concepts

economics risk management

Questions to Reflect On

  • How can we ensure counterparty resilience?
  • What safeguards reduce systemic spillover?
A Different Perspective

Risk transfer may backfire without robust oversight.

3.0 out of 5 (5 ratings)

More by Blythe Masters

Explore all 33 Blythe Masters quotes

More Customer quotes

Browse all 9,257 Customer quotes