Modern banks have to face several types of risks and failures of risk management have been claimed to be among the key causes of the 2008 financial crisis. It is not only regulators that have placed increased emphasis on risk management in an attempt to foster financial stability, it is also all the more important for bankers to manage their capital more efficiently in order to maximize risk-adjusted returns from their business activities.

In view of the above, critically discuss the major post-2008 crisis risk management initiatives undertaken by modern banks to be able to respond to risks better.