Posts From Steven Slezak

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Finance International

Managing differences between diversifiable and systemic risk

A hierarchical risk management system is not the best way to go. It is costly and the benefits are insufficient. Diversification suggests a different approach. In a letter to JPMorgan

Economics International

Why do low risk premia persist despite global turmoil?

Low risk premia for emerging market assets are persistent. Yet, the world is awash with turmoil and uncertainty. How do we explain this seeming contradiction? The Bank of International Settlements (BIS)

Finance International

To understand risk management, look to heuristics

From the Bible to Bagehot, heuristics have been central to risk management culture. The 21st century science of risk management needs to work hand-in-hand with the age-old art of heuristics. Heuristics—

Economics International

Risk is not limited to internal corporate audit

Could concentrating ERM functions in internal audit, under a supervising corporate audit committee, be an obstacle to developing effective enterprise-wide risk management? Managing risks should involve all levels of corporate management and staff,

Economics International

Risk literacy required at all corporate levels

The strategic process is fraught with uncertainty. Misunderstanding uncertainty and risk can undermine strategic efforts, but implementing risk literacy at all corporate levels can help mitigate the effects. Strategic management involves

Economics International

Why corporate culture needs risk literacy

Risk can be calculated with at least fair amount of confidence. Uncertainty cannot. Therein lies confusion. It is important to recognize the distinction between two fundamental but closely related concepts

North America Technology and infrastructure

GM’s risk management failures provide lessons for other firms

Strategic fails afford valuable lessons. There is something to be learned from the spectacular recent failure of General Motors’ once highly-touted enterprise risk management program. In 2012, G. Mustafa Mohatarem,

Economics North America

U.S. beef recall affects fragile agribusiness supply chain

A recent U.S. federal government recall of tainted beef illustrates the complexity and pressing risks of the global food supply chain. Managing these risks is critical to agribusiness, the well-being

Natural resources and energy North America

California drought threatens food security

Food availability, affordability and quality drive food security problems in the world. The drought in California threatens to exacerbate food security problems in all three issue areas. The state of

Asia Pacific Security

Diaoyu Islands may be China’s Islas Malvinas

China’s combative strategy, which is not supported by its actual military capabilities, risks more than it is likely to gain. It does not matter how slowly you go as long