Within the study of Systemic Risk, Jon Danielsson explores the nature of systemic risk and its significance for, in particular, the financial sector. The question is asked: Should we eliminate systemic risk? Danielsson suggests that whilst systemic risk cannot be ignored, it should not be eliminated

It is suggested that in the post-financial crisis era, rates of returns have at best fluctuated and at worst declined. In that context, if organisations, particularly financial institutions, seek to improve rates of return, greater risk will accompany that pursuit leading, perhaps, to greater systemic risk

Identify, analyse and explore the tensions between the pursuit by financial institutions of improved rates of return and any consequential increase in systemic risk. In so doing assess the benefits and drawbacks of regulation in the context of reducing systemic risk