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Lloyd Blankfein in FT

posted 762 weeks ago on

Here's a sample of Lloyd Blankfein in today's Financial Times: As policymakers and regulators begin to consider the regulatory actions to be taken to address the failings, I believe it is useful to reflect on some of the lessons from this crisis. The first is that risk management should not be entirely predicated on historical data. In the past several months, we have heard the phrase ?multiple standard deviation events? more than a few times. If events that were calculated to occur once in 20 years in fact occurred much more regularly, it does not take a mathematician to figure out that risk management assumptions did not reflect the distribution of the actual outcomes. Our industry must do more to enhance and improve scenario analysis and stress testing. Second, too many financial ins

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