Risk Management Lessons from the Credit Crisis: Talk by Bennett W. Golub of BlackRock

Risk Management Lessons Worth Remembering from the Credit Crisis of 2007-2009

Bennett W. Golub, Vice Chairman, Chief Risk Officer and Co-head, BlackRock Risk and Quantitative Analysis Group

Presented by the Morton L. Topfer Chair Lecture Series and the Department of Finance and Risk Engineering

Abstract

The discussion will present eight general principles of risk management and eight important risk management lessons worth remembering from the Credit Crisis of 2007 – 2009. The Credit Crisis has clearly demonstrated the importance of a strong, independent risk management function and the eight basic principles of risk management will help institutions to craft the foundation of their risk management organizations. The Credit Crisis has also revealed the inadequacy of many standard methods in quantitative risk management and called into question the efficiency of markets in general. The analysis of these eight lessons from the Credit Crisis provides insights into what went wrong and offers advice on how institutions can attempt to correct for these failings in the future.