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One of the key lessons risk managers should take from the global financial crisis is that apparently sound hedges may not do the job in all conditions.

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It is always possible to envisage threats to economic and political stability, but the next 12 months look likely to harbour many unhappy surprises.

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Credit default swaps have allowed banks and investors to improve the management of their credit risk, but they may represent a lurking source of contagion in a crisis.

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The eurozone is grappling with a fiscal crisis but its ability to cope is being hampered by a democracy deficit.

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Adaptation is a powerful force that helps ensure the survival of species, but it also has a dark side risk managers should keep in mind.

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