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Introduction > Changes since the first edition - Pg. 8

8 Introduction framework across the enterprise. This has many elements, each of which is required to help avoid similar disasters in the future: First, there should be common processes, terminology and practices for managing risks of all kinds. Second, it is essential that risk tolerances be fully understood, communicated and monitored across the enterprise. Third, risk management practices should be incorporated into all key business processes and decisions. And, fourth, management should make risk-related decisions using dedicated high-quality risk information. sovereign debt Although there were early signs of the emergence of a sovereign debt crisis at the time of the first edition of this book, the situation has become much more serious in recent times. Although some countries have more urgent problems than others, the overall trend has been adverse during 2011. Even some of the larger, apparently more stable, economies in the world have recently had their credit rating