I have heard through the grapevine that I need to write more. I try to write as often as possible, but I guess everyone can always do better. If anyone has any ideas, please send them in. There are topics I would love to write about, but am contractually restricted, so please don’t suggest those. Besides, if I write on those topics, you won’t buy my book when I get around to writing it.
Sunday, January 20, 2008
More Writing
Subscribe to:
Post Comments (Atom)
3 comments:
Book? Do the still make those?
Seriously, what else is there about which to write? The irresponsibility and mismangement by large financial institutions? Nope, there is that contract. How about the extortion by large banks to force the Fed to ease? Nope, there is that contract again? Hey, how about the lack of knowledged and credibility of financial advisors (brokers) and media types.
I often rip the media in my daily IUO publication. I cannot rip brokers as they are my audience. I too must be careful about ripping financial institutions as I am employed by one.
I just found your blog this morning through Mr. Hilter's. I haven't read a lot of your posts, but what I've found is informative and original.
As for what you might write about, I apologize if you've already covered this, and it's not particularly topical, but I've long wondered about the relationship and relative importance among credit, market and operational risk. Working in an area that manages a category of operational risk, I perceive operational risk as the dominant area of risk for any business. But let's face it, it's not quantifiable, so people focus on credit and market risk, which are.
To go one click further, a lot of risk that's labeled credit and market risk is really operational risk. If you write an exploding-ARM mortgage without income verification, you've obviously taken on a lot of credit and market risk, but the policy and process that allowed you to write that loan is an example of operational risk, isn't it? And the risk that a loan officer might encourage the customer to exaggerate her income is also operational risk, right?
It seems to me you can apply all the Basel II standards you like, and you won't be able to manage your operational risk with a quantitative approach. In most cases, any numbers you come up with will be guesses.
Any friend of Herr Hilter is a friend of mine. His writings are very underappreciated, especially by those who pay him to do so.
I haven't specifically written on operational risk, focusing on risk areas which have rarely been mentioned, particularly liquidity risk. I have touched upon the topic. Certainly SocGen is a case of operational risk. I will give it some thought. Thanks for responding.
Post a Comment