Financial Risk and Regulation

We study how risk builds and spreads in financial markets — and what that means for stability, efficiency and growth. Our work tests whether the current financial architecture is resilient, identifies where it is prone to systemic crises, and assesses the effectiveness of regulatory interventions. Drawing on theory, data and policy analysis, we design practical responses to emerging and evolving vulnerabilities across banks, nonbanks and financial infrastructure to inform regulators and policymakers.

Part of this programme runs through the Systemic Risk Centre (SRC). The SRC studies threats to the proper functioning of the financial system as a whole. To do so, the SRC analyses financial, economic, legal and political structures and incentives; maps interdependencies and vulnerabilities; and builds tools that enable policymakers and financial institutions to anticipate threats, strengthen resilience and effectiveness, and lower the likelihood and cost of systemic risk.

We disseminate research insights through the FMG newsletter, lecture series, conferences, and other events that bring together academics and practitioners from the financial sector, corporations, regulators, and policy makers. 

Flagship Events and Activities

The Charles Goodhart Lecture 

This is the programme's flagship annual event, established in 2022 to honour Charles Goodhart, the eminent economist and Emeritus Professor at LSE who was instrumental in founding the Financial Markets Group. The lecture focusses on topics of broad macroeconomic or financial markets importance. Previous speakers include Lawrence H. Summers, Raghuram Rajan, Andrew Bailey and Hyun Song Shin.

SRC Network conference series

One avenue through which systemic risk builds up and eventually unravels in complex, unexpected and costly ways is via network effects. This conference series has been a regular event since 2013, gathering the papers that have made new advances in this field and bringing together academics, policy-makers and practitioners.

Forum for Financial Regulation

The Forum seeks to trigger a lively debate on the most prominent issues on financial stability, by releasing written policy contributions from senior representatives in supervisory authorities, academia, and financial industry. The forum is spearheaded by Andrea Enria and Pedro Duarte Neves, two well-recognized regulators and supervisors, and responds to a perceived lack of insightful dialogue between supervisors and between academics and supervisors.

The Programme Directors are Martin Oehmke and Jean-Pierre Zigrand.