RMI-2302 Lecture Notes - Lecture 9: Credit Default Swap, Warren Buffett, Freddie Mac
26 Oct 2016
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Risk in business and society - notes 9. The global nancial crisis was a failure of risk management . But strategy (or lack thereof) played a role. Strategy should make companies more competitive, alert to their circumstances, and resilient. Mistakes in strategy, however, can be severe, strategic risk. Did companies forgo long-term strategy for quick pro ts. Another one of those readings where you should be going to ll in your gaps in knowledge. What is fannie mae / freddie mac. But did nothing to avert it either. Warren buffet sphere of competence and internet stocks in the 90s. Strategy did point to stock price as the only measure of success. Michael porter in the 90s lamented that companies were sacri cing strategy for more faddish concerns . Instead of developing one strategy based on analysis, prediction and deduction . Create a set of optimal conditions for the continuous emergence of superior strategies.
