Financial Risk Management in Times of Economic Uncertainty: Lessons from the Great Recession

Abstract

The Great Recession exposed significant vulnerabilities in financial risk management practices, leading to widespread economic hardship. This article examines key lessons learned from the crisis and their implications for managing financial risks in periods of economic uncertainty. It highlights the importance of stress testing, scenario planning, diversification, capital adequacy, and strong governance frameworks. By emphasizing these insights, financial institutions and individuals can navigate turbulent economic periods with greater resilience.