Chapter 18 Big Losses and What We Can Learn from Them 风险管理与金融机构PPT（英文）.pptVIP

Chapter 18 Big Losses and What We Can Learn from Them Big Losses (Business Snapshot 18.1, page 396) Allied Irish Bank ($700 million) Barings ($1 billion) Enron抯 Counterparties Hammersmith and Fulham Kidder Peabody ($350 million) LTCM ($4 billion) National Westminster Bank ($130 million) Orange County Procter and Gamble Risk Limits (9) Risk must be quantified and risk limits set Exceeding risk limits not acceptable even when profits result Do not assume that you can outguess the market Be diversified Scenario analysis and stress testing is important Managing the Trading Room (401) Do not give too much independence to star traders Separate the front middle and back office Models can be wrong Be conservative in recognizing inception profits Do not sell clients inappropriate products Liquidity Risk (4) Liquidity risk is important There are dangers when many are following the same strategy Lessons for Non-Financial Corporations (5) It is important to fully understand the products you trade Beware of hedgers becoming speculators It can be dangerous to make the Treasurer抯 department a profit center