ABSTRACT
Chapter 6 establishes a key shift between two discernible money cultures, of speculating on risk and speculating for risk. If the former pictured risk being dispersed to the peripheries of the financial system, this vision was undermined when concentrations of risk re-emerged at the epicentre of the system in 2007. This misfire led to a regulatory culture of speculating for risk, which seeks to visualize and understand the mobilization of risk in the financial system with much greater granularity. The argument is illustrated with reference to Bank statements about credit derivatives, the adaptation of VaR and the aggregation of risk in regulatory stress testing.
