Managing Risk

In recent years, the American corporate landscape has been littered with risky financial bets that went awry: Bum real estate loans. Defaulted junk bonds. Rogue brokers at Prudential Securities Inc. and traders at Kidder, Peabody & Co. Troubled mortgage-backed securities portfolios. And most recently, millions of dollars of losses from imprudent investments in derivative exotica by Procter & Gamble, Gibson Greetings, and Piper Jaffray, to name a few.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.