Reflections on Buy-Side Risk Management After (or Between) the Storms

摘要

This article highlights and emphasizes the importance of eight specific principles of risk management.The credit crisis of 2007-2009 has clearly reaffirmed the importance of a strong and effective risk management function, and these eight principles will help buy-side institutions think through their risk management organizations. In this article, Golub and Crum make the case for the importance of institutional buy-in, alignment and management of institutional interests, getting risk takers to think like risk managers, a fully engaged but independent risk management organization, understanding fiduciary obligations, bottom-up risk management, and constant monitoring of risk models for accuracy and relevance-and that risk management does not mean risk avoidance.