6 WAYS COMPANIES MISMANAGE

RISK
SiMER

Presented by:
Amit
Pankaj
Suresh
Shrikant
 INTRODUCTION
1. RENE M. STULZ – A professor of risk
management

2. 6 ways companies mismanage risk

INTRODUCTION
INTRODUCTION
TO
TO AUTHOR
AUTHOR

RENE M.STULZ
 Contd……
1.Ohio state university’s FISHER COLLEGE of BUSINESS
in COLUMBUS

2.As the Everett D.Reese chair of banking and monetary

economics

3.Graduation- london school of economics

massachusetts institute of
technologies (76-80),PH.D eco

4.Books –Risk management and derivatives,south western

college publishing,2003

5.The Squam Lake Report-fixing the financial system,co-

 Contd…….

 Published many papers like:-

1.A model of international asset pricing,journal of financial
economics,1981

2.The limits of financial globalisation,JOF,2005

3.Hedge funds past,present and future,journal of economics

perspective,2007
 ACADEMIC APPOINTMENTS AND
AWARDS
1.Ohio state university-prof of finance(1985 to present)
2.director,peninsula banking group Inc.(01 to present)
3.chairman,scientific council,swiss finance institute(06 to
present)

AWARDS
1.Eastern finance association scholar award,98
2.Vice president(02),president
elect(03),president(04),American finance asso.
3.Outstanding academic contribution to corporate
governance award,Drexel univ,09
SUMMARY OF THE ARTICLE

Relying on historical data

Focusing on narrow measures

Overlooking knowable risks:

1.Risk outside the normal risk class
2.Incurred by hedging
3.Market concentration risk
4.Value assumption risks
 Contd……
Overlooking concealed risks

Failing to communicate

Not managing in real time

 SIGNIFICANCE
 Significance can be felt

FILLING THE GAP

Turns out to be a one of its kinds—a

genuine research
 CONCLUSION and PERSONAL
EVALUATION
 Deals about how companies react to situations!!
 Is it right??????
 If not --Whats the right way to react
 The approach of the companies matters
 To manage in the real time
 Communication gap
 It’s a dynamic process
 Risk management is unable to keep up with the
dramatic changes in the market
 GENERAL CRITIQUE
 Evey coin has two sides:

1. Sustainable risk management

2.Says to predict the level of uncertainity which can

happen-difficult

3.To have prepared well in advance for all such

uncertainities

4.To come up with modern techniques

 REFERENCES
 HARVARD BUSINESS REVIEW :-

 South asia
 Edition -- March 2009
 hbrasia.org
 Google.com
 A N K
TH
Y OU