Title
Document Type
Article
Publication Date
6-1-2010
Publication Source
Internal Auditor
Abstract
During the last few years, global financial companies and investment banks have taken billions of dollars in write-downs owing to exposure in the subprime lending market. Lack of risk function visibility, insufficient communication of risks to top management, and siloed risk approaches have been cited as reasons for these failures. New York University finance professor Nouriel Roubini, one of the few who predicted the crisis, famously observed at the World Economic Forum's 2009 Davos Summit that risk cannot be priced correctly "when the opacity and lack of transparency of financial firms and new instruments lead to unpriceable uncertainty rather than priceable risk." These organizations apparently had risk management functions, but they did not recognize the changing market conditions and adapt their organizational strategy and processes appropriately.
Inclusive pages
56-59
ISBN/ISSN
0020-5745
Copyright
Copyright © 2010, Institute of Internal Auditors
Publisher
Institute of Internal Auditors
Volume
67
Issue
3
eCommons Citation
Lehmann, Constance M.; Ramamoorti, Sridhar; and Watson, Marcia Weidenmier, "Maximized Monitoring" (2010). Accounting Faculty Publications. 91.
https://ecommons.udayton.edu/acc_fac_pub/91
Included in
Accounting Commons, Business Administration, Management, and Operations Commons, Business Law, Public Responsibility, and Ethics Commons, Corporate Finance Commons, Nonprofit Administration and Management Commons
Comments
The document available for download is the published version, provided in compliance with the publisher's copyright policy. Permission documentation is on file.