Until about twenty years ago, the consensus view on the cause of financial-system distress was fairly simple: a run on one bank could easily turn to a panic involving runs on all banks, destroying some and disrupting the financial system. Since then, however, a series of eventssuch as emerging-market debt crises, bond-market meltdowns, and the Long-Term Capital Management episodehas forced a rethinking of the risks facing financial institutions and the tools available to measure and manage these risks. The Risks of Financial Institutionsexamines the various risks affecting financial institutions and explores a variety of methods to help institutions and regulators more accurately measure and forecast risk. The contributors--from academic institutions, regulatory organizations, and banking--bring a wide range of perspectives and experience to the issue. The result is a volume that points a way forward to greater financial stability and better risk management of financial institutions.