OCtOBER 2009
CONtRIBUtORS
President and CEO
Richard Apostolik
rich.apostolik@garp.com
Managing Director, Research Center
Christopher Donohue, PhD
chris.donohue@garp.com
Managing Director, Global Head of Business
Development and Marketing
Jaidev Iyer
jaidev.iyer@garp.com
Managing Director, Global Head of Training Services
Alastair Graham
alastair.graham@garp.com
Chief Operating Officer
Michael Nielsen
michael.nielsen@garp.com
Controller
Lily Pan
lily.pan@garp.com
Board of Trustees
William Martin, Chairman
Chief Risk Officer, Commonfund
Richard Apostolik
President and CEO, GARP
Kenneth Abbott
Managing Director, Morgan Stanley
Robert Ceske
Chief Risk Manager, Treasury and Global Funding Operations,
GE Capital
Thomas Daula
Chief Risk Officer, Investment Banking, UBS
Sebastian Fritz
Senior Advisor, Frankfurt School of Finance and Management
Michael Hofmann
Chief Risk Officer, Koch Industries
Donna Howe
Managing Director, UBS Securities
Frederick Lau
Head of Group Risk Management, Dah Sing Bank
Jacques Longerstaey
Managing Director, Chief Risk Officer, State Street Global Advisors
Victor Makarov
Head, Market Risk Analytics, Metropolitan Life
Michelle McCarthy
Chief Risk Officer, Russell Investments
Elmer Nakao
Chief Risk Management Officer, Nikko, Citigroup
Riccardo Rebonato
Global Head of Market Risk and Quantitative Analytics, RBS
Jacob Rosengarten
Chief Risk Officer, XL Capital
Robert Scanlon
Group Chief Credit Officer, Standard Chartered Bank
David Shimko
Managing Director and Chief Risk Officer, NewOak Capital
René Stulz
Reese Chair in Banking and Monetary Economics,
Ohio State University
Peter Tufano
Sylvan C. Coleman Professor of Financial Management,
Harvard Business School
Mark Wallace
Managing Director, Chief Risk Officer,
Credit Suisse Asset Management
RISK PROFESSIONAL, ©2009, Global Association of Risk Professionals,
111 Town Square Place, Suite 1215, Jersey City, NJ 07310. All rights reserved.
Reproduction in any form is prohibited without written permission from GARP.
Printed in the United States by RR Donnelly.
Speaking earlier this year at the RSA Conference (men-
tioned in the June Risk Professional, page 1), retired Stanford
University professor Martin Hellman complimented Janet
Tavakoli as “the Cassandra of credit derivatives.” Ponder-
ing the ability of a few to see and articulate truths that most
ignore, Hellman mentioned Tavakoli in the same breath as
legendary investor Warren Buffett, who in 2003 derided de-
rivatives as “financial weapons of mass destruction.” As it
happens, Tavakoli’s recent book on how the financial world went so wrong is titled
Dear Mr. Buffett, and part of it is the basis for her article beginning on page 58. An
MBA in finance from the University of Chicago Graduate School of Business,
where she has taught derivatives, Tavakoli is also the author of Structured Finance &
Collateralized Debt Obligations and president of Tavakoli Structured Finance in Chi-
cago. Her e-mail address is jt@tavakolistructuredfinance.com.
Focusing on the growing demands of
enterprise risk management, Willi
Brammertz (left) and Rami En-
tin collaborated on Unified Financial
Analysis: The Missing Links of Finance,
from which they draw in “Risk Tax-
onomy” (page 50). Brammertz (willi@
brammertz-consulting.ch) is senior risk
adviser at FRSGlobal, which in 2008 acquired a company he co-founded, Iris In-
tegrated Risk Management, and its Riskpro financial analysis system. Entin (rami.
entin@frsglobal.com), a Rutgers University physics PhD, has worked on the devel-
opment of Riskpro and is a senior consultant at FRSGlobal.
Sam Savage is chairman of ProbabilityManagement.org,
which aims to mitigate the “flaw of averages” that figures
in the Technology article (page 36) co-written with Aaron
Brown of AQR Capital Management and of the Risk Pro-
fessional editorial board. Also a fellow of the Judge Business
School at Cambridge University and a consulting professor
of management science and engineering at Stanford, Sav-
age ( savage@stanford.edu) describes the evolution of the
DIST (distribution string) data type in the recently published The Flaw of Averages:
Why We Underestimate Risk in the Face of Uncertainty, reviewed on page 64.
In “Calming the Waters” (page 32), insurance industry veteran James Mallozzi
relates how Prudential Retirement’s institutional solutions group, which he head-
ed, addressed and quieted customer concerns amid the financial crisis. In October,
Mallozzi became CEO of Prudential Real Estate and Relocation Services.
