The Communication of Quantitative Information on Market Risk Using Graphics in the Annual Reports of Banks and Securities Firms

Abstract

The explosive  growth of the derivatives markets and the highly publicised recent  losses have created concerns among various parties about the possibility of increasing systematic risk. Systematic risk is the risk that a disruption (in a firm, in a market segment, to a settlement system. etc) causes widespread difficulties in other firms, in other market segments or to the financial system as a whole (see Shah 1997 for details).