Have we gone too VAR? The forsaken side of risk management
Abstract
Financial institutions are reeling with unprecedented losses, much of which can be traced to the adoption of risk models and management techniques that failed the test of time. This paper comments on how bright portfolio managers got into this global calamity, what was overlooked, and steps the profession can take to foster improved decision making. According to Randall Payant, the time is now for risk professionals to reexamine the foundation of their beliefs about risk taking. Doing so should allow for a better understanding of how to improve the management process that can help avoid future economic disasters.
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Author's Biography
W. Randall Payant is the Principal of WRPConsulting. Recently retired after 14 years with the Sendero Institute, Mr Payant’s international reputation for asset/liability management and performance analysis insight makes him a sought-after adviser to the banking community. A former senior vice president of investments and funds management at a regional Midwestern bank, he has extensive experience in commercial finance, bank funding and liquidity management, and investment portfolio management. A graduate of the University of Wisconsin, he holds undergraduate and postgraduate degrees, with honours, in finance, accounting and economics. He is also a graduate of the Stonier Graduate School of Banking, where he subsequently returned as a faculty member.
Citation
Payant, W. Randall (2009, June 1). Have we gone too VAR? The forsaken side of risk management. In the Journal of Risk Management in Financial Institutions, Volume 2, Issue 3. https://doi.org/10.69554/YDBL5825.
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