Enterprise Risk Management: From Incentives to Controls, 2nd Edition

Acknowledgments

This book is a reflection of my 30-year career in risk management. As such, I should first thank two of my early mentors. Charlotte Chamberlain, of Jefferies & Company, contributed to my professional development by challenging me to improve my writing and presentation skills. Charlotte was also a risk taker when she hired me, at age 23, as vice president in charge of asset/liability management for Glendale Federal (then a $15 billion bank). Jon Moynihan, of PA Consulting, taught me that a successful professional must develop a T skill set with both broad general management skills (the horizontal line) and deep technical expertise (the vertical line). Based on Jon's advice, I've strived to develop business management and risk management as my T.

Effective risk management is driven by not only sound theory, but also sound practice. Best practices in risk management can only emerge when sound theories and models are tested in the confines of the real world. Two individuals provided me with significant opportunities in this regard. Rick Price hired me in 1993 to help set up a new capital markets business at GE Capital, and gave me the first opportunity to define the role of a chief risk officer in managing market, credit, and operational risks. Jerry Lieberman was very supportive of the enterprise-wide risk management program that I established at Fidelity Investments between 1995 and 1998, especially in managing operational risks and balancing the hard and soft sides ...