Is the Way Financial Institutions Manage Risk Correct?

Risk management is a substantial part of every financial institution. The way they are supposed to think about risk and manage risk is not determined by themselves or the shareholders, writes John Defterios. He says regulatory authorities increasingly tell banks: You have to measr risk in this way. And so both the measurment and the techniques use for dealing with it is increasingly harmonized with fuels his herd behavior at causes bubbles and bursts and crises.Defterios: "We can very accurately capture the mathematical distribution of those outcomes"