The International Organization of Securities Commissions (IOSCO) has published a report on risk identification and assessment methodologies for securities regulators. The report aims to provide an overview of the methods, approaches and tools that IOSCO and securities regulators have developed to identify and assess emerging and potential systemic risks.

IOSCO recognises that there is no one size fits all approach due to the fact that there are different types of intermediaries, products and investors when it comes to predicting trends with such data. However, the report does highlight the qualitative risk analysis with quantitative tools approach. Such an approach therefore can include the following elements:

  • risk dashboards that systematically track quantitative risk indicators;
  • data analytics;
  • econometrics;
  • research that is focused on risk analysis of products, firms and markets; and
  • incentives and investor behaviour.

View Risk identification and assessment methodologies for securities regulators, 26 June 2014