Barradas, RicardoLagoa, SérgioLeão, Emanuel2018-02-222018-02-222015ISBN: 978 1 78471 506 9http://hdl.handle.net/10400.21/8106Livro inserido na New Directions in Modern Economics seriesThis chapter is concerned with the implications of both visions of finance for risk management. The mainstream view argues that, as finance grows, risk management becomes more efficient and therefore ensures the diversification and control of risk. In contrast, the financialization approach is sceptical about the finance sector’s capacity to manage risk effectively. We review the literature to assess the role of risk management in the subprime crisis in order to evaluate which of the two aforementioned visions prevails and which is more persuasive. This chapter is concerned with the implications of both visions of finance for risk management.engRisk managementSubprime crisisFinance-dominated capitalismbook part