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Risk management teams get tough with equities bankers

Equities bankers face greater scrutiny over the bets they make

Extreme risk events such as an asteroid collision with the earth were not foremost in bankers’ minds before the financial crisis, but traders are now more aware of one-in-100-year shocks.

The pendulum is yet to swing to an extreme where traders must contemplate the implications of outlandish events on a regular basis, but the risk departments that look over their shoulders do, and heads of equities increasingly need to think the unthinkable.

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