Government and its Chief Risk Officer role: an assessment

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With COVID putting pressure on countries, governments, and people across the world, with governments spending enormous sums of money to keep the real economy and financial markets alive, and not least with climate risks becoming ever more real and heeded—government has a never bigger, never broader, never more time critical role as the nation’s CRO. This is as true for the UK as every other country.

How can we assist governments in their CRO role?

First, politics is risk management writ large. Second, all risks are initially borne by citizens. Third, capital markets don’t price non-financial risk reliably, and standard economic theory doesn’t have an answer.

We are very pleased to present as our first guest article a discussion of government’s role as CRO, written by Mike Clark.

This discussion is of central importance to us all.