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Animal Spirits
Last week, some hedge fund manager made fleeting headlines when he announced he was bullish because “Animal spirits matter.” Are ...
Just Kill Me – United Airlines’ Risk Management
Don’t ask “how could this have been avoided?” That is the wrong question. By now, everyone has seen the graphic videos of United Airlines forcibly […]
Rubbernecking the Oscars Envelopegate
If you are a risk manager, don’t ignore what happened at Sunday’s Oscars. You must respond. As details emerge about how the wrong envelope was […]
Watch Your Back. Watch Your Sales Force.
Salespeople are like “hired guns”. They play a unique role within firms. But when things go wrong, hired guns can become loose cannons. There are […]
What’s Your Risk Appetite?
Suppose you arrive at your dentist’s office for an appointment. Before escorting you to an examination room, the receptionist asks what your pain appetite is. […]
How To Start A New Risk Management Job
You finally did it! You landed that senior risk management position at a fabulous firm. The job search took a while, and the vetting was […]
How to Measure VaR for a Pegged Currency
On Friday, I wrote a lighthearted piece challenging criticisms of value-at-risk. The Swiss had abandoned their currency peg; people had lost money; and VaR was […]
Snappy Comeback to Latest Criticism of VaR
Last week, the Swiss pulled their peg, and swissie soared. Part of the fallout—surprise, surprise!—is criticisms of value-at-risk. This time The Economist is leading the […]
A Revelation
I have written about it before, and I am sure I will write about it again. … how financial risks that devastate firms aren’t random […]
Is Risk Management a Job or a Career?
There are few life decisions as consequential as your choice of career. Get it wrong, and you’re in for a world of discontent. Perhaps you […]
List Of Risk Management Failures
Those who cannot remember the past are condemned to repeat it. Nowhere is George Santayana’s famous admonition more applicable than in the field of risk […]
What The 4 T’s Overlook
If you have been active in risk management for a while, you have probably heard of the 4 T ‘s. These—at a very high level—are […]
High-Frequency Trading: What You Need To Know
You probably already know the basics: that high-frequency trading (HFT) is a style of trading that involves placing, transacting and/or rescinding numerous orders over compressed […]
Book Review: Flash Boys
Michael Lewis has a new book out. It may be more influential than even his 1989 runaway bestseller Liar’s Poker. Called Flash Boys: A Wall […]
Locking Out Shareowners (For a Fee)
It is the most sinister development in finance since robo-signing of foreclosure documents: corporations locking shareowners out of their own annual meetings. The pretext is […]