Posts From Steven Slezak
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
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)
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—
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,
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
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
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,
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
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
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