Inspired by one of the few banks that have successfully survived the 2007-2009 credit crisis, the case illustrates the risk management in the area of corporate lending. General Director Alistair Dawes has to decide if the risk management process is adequate to uncover mega-risks, based on reflections on risk assessment and authorization of $ 1 billion loan offers. Students are encouraged to evaluate and analyze the risks in the proposal prepared by the sales organization of the bank on behalf of a large gold mining company, and make a decision (whether Wellfleet should accept it or not.) At the same time, students learn that gray-area decisions risks and, in particular, the risk-adjusted performance measurement can rarely be automated. Risk management requires leaders to find a balance between risk modeling and quality business solutions holistic (rather than silo-based) in terms of risk. "Hide
by Anette Mikes Source: HBS 16 pages. Publication Date: July 13, 2009. Prod. #: 110011-PDF-ENG
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