Published by Mark Smith-HalvorsenThere is a need to address the current exposure to risk in the financial sector, as another downturn could come before regulatory reforms are in place, it has been claimed.The speed at which it takes government and the regulatory authorities to introduce change to the financial system means that there is currently little in the way of protection from another downturn, an expert believes.Roy Smith, professor of finance at New York University's Stern School of Business, told Bloomberg that currency risk management remains low at this time."Based on our experience of government's ability to execute these things effectively and in a timely way, we are almost uncovered now from any future financial risk for at least another eight or ten years, and that's a little scary," he said.However, regulatory authorities are working to quicken the pace of change in the sector, Bloomberg reports, noting that US Treasury Secretary Timothy Geithner has highlighted his wish to move away from the slow pace that rule writing currently progresses at.Calls for regulatory reform have been made since the onset of the crisis, but results are taking time to be seen.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.