Monitoring systemic risks
The Systemic Risk Council is among other things tasked to with identifying and monitoring systemic financial risks. The Council's current assessment of risks is stated in press releases published after each meeting of the Council. The method used to monitor systemic risks is described in a published note.
Financial crises affect the overall economy and welfare of society. The most recent financial crisis was the systemic crisis in the autumn of 2008. Within a short period of time, large parts of the global financial system collapsed, and together with the ensuing uncertainty the crisis resulted in a considerable loss of welfare.
Systemic financial crises are likely to occur on a regular basis in the future as well. To prevent or reduce systemic financial risks that may put pressure on all or parts of the economy , the Council is tasked with monitoring the financial system. This includes general monitoring of the entire financial system, both in areas regulated by national or international legislation, and in areas which are less formally regulated today.