The Financial Market Consequences of 9/11

Abstract

The events of September 11, 2001, challenged basic assumptions regarding market access, liquidity, clearing, and account reconciliation fundamental to the functioning of the financial markets. Policymakers have responded by proposing that reserves be set aside by firms to cover this operational risk. This article examines the effectiveness of these proposed measures within the context of two broad issues: 1) a more comprehensive definition of operational risk, and 2) the market linkages between related financial and nonfinancial risks.

Citation

KOSS, R.A. (2002), "The Financial Market Consequences of 9/11", Journal of Risk Finance, Vol. 4 No. 1, pp. 37-41. https://doi.org/10.1108/eb022952