Inspired by one of the few banks that have successfully survived the 2007-2009 credit crisis, the case illustrates the risk management in corporate business finance. General Director Alistair Dowes has to decide if the risk management process is adequate to uncover mega-risks in the portfolio, based on reflections on risk assessment and enforcement of two $ 1 billion loan offers. Students will be asked to carry out an assessment and risk analysis in two sentences, and to come to a decision (whether Wellfleet should accept them or not.) At the same time, students learn that gray-area decisions risks and, in particular, the risk-adjusted performance measurement can rarely be automated. Risk management requires leaders to find a balance between risk modeling and qualitative business decision -. Holistic (rather than silo-based) from the point of view of the danger of "Hide
by Anette Mikes Source: Harvard Business School 22 pages. Publication Date: March 10, 2009. Prod. #: 109071-PDF-ENG
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