Companies are often far more (or sometimes far less) at risk than they believe themselves to be
With billions of dollars at stake in their credit portfolios and trading operations, banks have been forced to look much more closely at the risks they take every day (and every minute of the day). Yet many financial institutions ignore a much more fundamental type of risk: their choices about which markets to participate in, how to compete in those markets and the impact of those choices on the risk profile of their institutions. How can companies reduce such strategic risk? Only by rethinking their approach to risk management.