金融风险管理的现状和未来外文中英文翻译.docx

外文翻译The Present and Future Of Financial Risk ManagementMaterial Source: /sol3/results.cfm?RequestTimeout Author: Carol Alexander The role of risk management in financial firms has evolved far beyond the simple insurance of identified risks, to a discipline that centres on complex econometric and financial models of uncertainty. Financial risk management has been defined by the Basel Committee (2001) as a sequence of four processes: the identification of events into one or more broad categories of market, credit, operational and ‘other’ risks and into specific sub-categories; the assessment of risks using data and a risk model; the monitoring and reporting of the risk assessments on a timely basis; and the control of these risks by senior management.Of the trends in financial markets that have had a significant impact on risk management practices today, deregulation has been a main driving force. Since the 1970s the deregulation of capital flows has led to increased globalization; deregulation of industries has enabled the rapid expansion of new companies such as Enron (Bodily and Bruner, 2002; Bratton, 2003); and with the deregulation of financial operations new risks have been acquired – with some banks offering insurance products and insurance companies writing market and credit derivatives (Broome and Markham, 2000). Over-the-counter derivative markets rapidly overcame all others in notional size but capitalization, on the global scale, decreased during this period and by the early 1980s some individual banks, if not national banking industries, had become highly vulnerable.As a result the supervision and regulation of banks and other financial firms has increased. In particular, capital adequacy requirements have been extended to cover more types of risks.1 The first Basel Accord in 1988 covered only credit risks in the banking book; the Basel 1 Amendment in 1996 extended this to market risks in the trading book; and now the new Basel 2 Accord that will be adopt