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In the international financial arena, G7 policymakers chant three things: more market‐sensitive risk management, stronger prudential standards, and improved transparency. The message is that we do not need a new world order, but we can improve the workings of the existing one. While many believe this is an inadequate response to the financial crises of the last two decades, few argue against risk management, prudence, and transparency. Perhaps we should, especially with regards to market‐sensitive risk management and transparency. The underlying idea behind this holy trinity is that it better equips markets to reward good behavior and penalize the bad, across governments and market players. However, while the market is discerning in the long run, there is now compelling evidence that in the short run, market participants find it hard to distinguish between the good and the unsustainable; they herd; and contagion is common.

Assesses the effectiveness of the European Central Bank in maintaining price stability, growth and bank liquidity across the eurozone. Looks at the policies which it has applied in response to economic events, suggesting that its treatment of the falling euro value has eroded its credibility and that it is “struggling” to provide the banks with liquidity. Criticizes the speed and adequacy of its statistical information, the consensual style of managing its policy‐makers and the lack of transparency in its proceedings.

Basing himself on the premise that present economic progress cannot follow the ‘Business as usual paradigm’ and hope for continued and unlimited progress, the author holds that we need to look into the larger dimensions of growth and development, which include social, environmental and other complex factors. So in this chapter, the author makes some pertinent suggestions for a sustainable growth model inspired by green growth and degrowth.

The first section evaluates the salient features of green growth and its drawbacks. It is followed by a discussion on the notion of degrowth, with its challenge to change the direction of growth (economic, ecological, social and cultural), without which human civilisation, as we know it today, may not survive. Finally, in the concluding chapter, based on these two notions of green growth and degrowth, an all-inclusive and sustainable regrowth model is propounded.

By creating an awareness of the need to shift development goals and Corporate Social Responsibility (CSR), the author argues that we could use economic regrowth strategically and responsibly to make the world more sustainable and viable. Responsible corporates will make their contribution to such an organic, resilient and sustainable regrowth and their CSR activities could be the starting point for this change, without which humanity's future is seriously threatened.

Finally, the author acknowledges that humanity has profited from the tremendous technological and economic progress we have made in the last four centuries, learnt from its mistakes and are ready to reorient ourselves individually and collectively towards a sustainable economic regrowth.

In this extract from his new book, Handling Investment Risk, the author examines operational risk and, with case studies ranging across Nigerian fraud, the split capital trusts scandal, Chase Manhattan in Russia and Deutsche Morgan Grenfell in 1996, shows how to deal with all the issues involved.