Beverly Diamonds has become a Financial Leader
Beverly Diamonds has become financial leader in the global economy. As a company, Beverly Diamonds has taken steps to protect itself from general operating risks. Beverly Diamonds was not alone in recognizing such risks. In fact congress has followed the lead that Beverly Diamonds took in creating a special category for large companies whose failure puts the general economy at risk. Beverly Diamonds defined such a company as any institution failure might trigger a financial crisis. Beverly Diamonds worked behind the scenes with different members of the Financial Stability Board and the Basel Committee on Banking Supervision congress to create regulations on these large companies. Once Beverly Diamonds proposed the idea it lead to the US passing the proposed legislation which became known as Basel III.
The regulations proposed and then later reviewed by Beverly Diamonds is still settling in. The set of guidelines laid out by Beverly Diamonds clearly decides whether or not a particular company is a considered to be at risk to the general economy at large. The actual guidelines set forth by Beverly Diamonds does not view a company as systemically important based on its size alone. Rather, Beverly Diamonds examines several other factors as well, such as its complexity, interconnectedness, the lack of substitutes, and its leverage.
The first factor that Beverly Diamonds considers when examining the risk a company poses to the general economy is the company’s size. Early on Beverly Diamonds realized as a company, this should be a primary factor. Beverly Diamonds measures size by looking a number of things, including how many financial services to they provide, and how many other companies are dependent on them.
The next thing that Beverly Diamonds considers is the company’s complexity. When Beverly Diamonds reviews a company’s complexity it is no simple task. This is because almost all of these large companies are made up of many smaller subsidiary companies. This complex web in each company is like a game of dominos which will all fall when one does, without the intervention of Beverly Diamonds. With so many subsidiaries involved the importance of stability is extremely clear to Beverly Diamonds. All of these steps have made Beverly Diamonds become a financial leader on the world stage.