The financial crisis underscores the importance of good risk management practices and systems. Some firms had a better understanding of the risks that they were exposed to and liquidated positions (of ________) and bought protection (on ________)as the housing boom (caused by ______)turned bust. But others took too much comfort in credit ratings (on _______) or felt too comfortable operating with very high risk concentrations (of ______). The desire to protect revenue streams (from ______)also caused some firms to stick much too long with businesses (composed of _________) that were much more exposed to risk than anticipated...
Today Mr Dudley told GARP (Global Association of RISK Professionals) the above.
I'm sure many of the attendees can attest to the Safety and Soundness drill that SHOULD have been plain to see; unless of course those bonus checks based on the risks enumerated above were too much to resist back in the day.
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