It Wasn’t Me: Banks and Managing Risk

All credit to www.economist.com/node/14587120

From the comments section:

“With reference to your leader on managing banks (“It wasn’t me”, October 10th) and your observation that “there is no archetype of success”, I have been involved for 22 years in the Lloyd’s of London insurance market and have learnt many basic lessons. These include: understand correlations; calculate your exposures based upon total amounts at risk; don’t trust sophisticated models, keep it simple; and use a multi-metric exposure management approach that does not rely on one measure. Maybe Santander and Goldman Sachs did the basic exposure management parts better than the rest.”

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