In the EU, the European Systemic Risk Board, ESRB, was established in 2010, cf. the box, and in Denmark the Systemic Risk Council was established in 2013. It is the task of the Systemic Risk Council to monitor, identify and contribute to limiting systemic risks. Systemic risk can trigger financial crises.

The Systemic Risk Council can make statements on financial issues, including the development in systemic risks and financial regulation, which the Council finds important in relation to financial stability. The statements may vary in strength and may be in the form of observations, warnings and recommendations.

• An observation implies that according to the Council's assessment there is a risk of systemic risks building up.
• A warning involves implies that according to the Council's assessment there are clear indications of the building up of systemic financial risks and that mitigation should be considered.
• A recommendation is a specific proposal to the government or an authority for an initiative that could limit or counter identified systemic risks.

Composition of the Systemic Risk Council
Since the Council is composed of authorities and institutions with special expertise and knowledge in the financial area, all relevant competencies are represented. The Council has 10 members: two from Danmarks Nationalbank, two from the Danish Financial Supervisory Authority, one from each of the Ministry of Economic Affairs and the Interior, the Ministry of Business and Growth and the Ministry of Finance as well as three independent experts with knowledge of financial matters.

The Chairman of the Board of Governors of Danmarks Nationalbank chairs the Council. Danmarks Nationalbank acts as secretariat for the Council. The authorities represented in the Council also participate in the work of the secretariat. The Council meets at least four times a year.

More information is available at the website of the Systemic Risk Council.