No risk management is perfect

We separate risks into two categories: the known unknowns, and the unknown unknowns. The known unknowns are things we can measure and hedge, or lay off to a certain extent, the unknown unknowns are things that are unhedgable by defition. Fortunately, people's knowledge about risks are improving (at a huge price of course), and hopefully this second category is shrinking. I'm a firm believer that after the crisis, the risk management process and controls have improved massively at both the sell side and the buy side. Is it perfect? By no means. Is it a focus now? Absolutely at any reputable place