The Great Debate

What do risk officers worry about?

May 18, 2012

JPMorgan’s astonishing $2 billion-plus quarterly loss due to trading in credit default swaps from its London office spotlights the crucial role of the chief risk officer (CRO). What exactly are risk officers supposed to do? Is the CRO someone who fills out reports, becomes a fall guy for misplaced strategy or, as a key executive, makes management aware of the risks and has input to decisions made by the senior management team?

Why did the SEC fail to spot the Madoff case?

January 6, 2009

mark_williams— Mark T. Williams, a finance professor at the Boston University School of Management, is a risk-management expert and former Federal Reserve Bank examiner. The views expressed are his own. —