The UK’s Risk Management Framework Post-۲۰۰۸ Financial Crises

The financial crisis of ۲۰۰۷-۰۸ exposed serious gaps in UK financial regulations; leading to managing massive risks and changes in the market. This article considers reforms made in the United Kingdom following the crisis by introducing new regulatory bodies, deploying the use of macroprudential tools, a higher capital requirement, a stress test, and introducing the Special Resolution Regime to financial affairs. It does this by analyzing official documents, case studies, and economic data to assess the efficacy of those reforms in reducing risks related to financial stability. The result of the research shows that the formation of the PRA and FPC regulation, among other reforms like ring-fencing and bail-in strategy, has been strengthening the UK's financial system. However, other challenges include the rise of non-bank financial intermediaries, climate risks, and digital currencies-call for new adjustments. The article concludes that most of the reforms made by the UK financial system since the crisis were successful in correcting the issues exposed in ۲۰۰۸, but remaining innovative is necessary to ensure financial stability in a complex, interconnected global economy.

Keywords:

Financial Stability , Regulatory Reforms , Systemic Risk , Macroprudential Oversight , Post-Crisis Resilience