ABSTRACT
Regardless of how good a firm is at setting its business strategy and risk appetite profile, as well as identifying any potential extreme risk exposures, no firm can guarantee that its business is immune to a tail risk impact. Especially, when a large systemic crisis develops and a contagion spreads across all businesses, each firm (even the most risk-averse) is subject to the effects of financial turmoil in one way or another. Those who failed to build the first line of defence and adopted reckless business strategies are as good as doomed. They will soon find themselves right in the epicentre of the ‘perfect storm’.
