IOSCO published a report titled, “Risk Identification and Assessment Methodologies for Securities Regulators,” which provides an overview of the methods, approaches, and tools that IOSCO and securities regulators have developed and implemented to identify and assess emerging and potential systemic risks.
The report was prepared as part of the IOSCO Committee on Emerging Risks’ effort to identify, analyze, and monitor systemic risk. The paper is organized around the following themes:
- the definition of risk;
- IOSCO risk identification methods;
- risk identification methods used by securities regulators; and
- an analytical framework for assessing systemic risks.
According to the paper, securities regulators are increasingly pairing qualitative risk analysis with quantitative tools, such as risk dashboards that systemically track quantitative risk indicators and data analytics, econometrics, and research.