Defying the risk

Reckless risk-taking was a major cause of the 2008 crisis. The various players reacted by relying on strategies that were as low-risk as possible, with the intention of giving themselves time to learn the lessons of the crisis and better control the risk, not to run away from it. But what was intended to be only a temporary withdrawal seems to have gradually crystallized into a Malthusian aversion to risk. Admittedly, the psychological boundary between increased risk aversion and a perception of increased risk is subtle. Nonetheless, the price of this aversion is very high in terms of slower productivity gains and growth, at a time when the challenges of ageing and climate transition call for a revival of entrepreneurship and innovation. The purpose of this session is to reflect on how to revive this spirit of entrepreneurship and innovation under conditions that ensure better control of risk-taking at the same time.