Financial Crisis

RIMS Executive Report The jeopardize Perspective The 2008 Financial Crisis A Wake-up impose for endeavor Risk Management The 2008 Financial Crisis A Wake-up Call for Enterprise Risk Management Editor Bill Coffin Contributors Laurie Champion, Aon Global Risk Consulting Pete Fahrenthold, Continental Airlines Carol Fox, Convergys Corporation John Phelps, Blue cover and Blue Shield of Florida, Inc. Rick Roberts, Ensign-Bickford Industries, Inc. Mary Roth, Risk and redress Management Society, Inc. Jeff Vernor, Russell Investment Group Art Director Joseph Zwielich border: ERM@RIMS.org 2 © 2009 Risk and Insurance Management Society, Inc. (RIMS) All rights reserved. www.RIMS.org The 2008 Financial Crisis: A Wake-up Call for Enterprise Risk Management For years, ordinary investors, encouraged by financial advisors and employers, have relied upon the securities and mutual funds held in their individual retirement account and 401(k) accounts to retire comfortably. But all of that changed over the last 18 months, as the subprime lending crisis evolved into a full market nuclear meltdown in the second half of 2008. In short order, most all of Wall Streets major investiture firms had either collapsed or suffered staggering losses.

Even insurance big AIG had to secure an emergency loan from the federal government in order to avoid bankruptcy following collateral calls establish on the decline of the mortgage securities underlying its credit-default-swap protection products for collateralizeddebt obligations, or CDOs.1 In fact, at the end of 2008, the federal government assure more money to bail out the financial serve industry (as well as other segments of the economy) than it spent on the Louisiana Purchase, the New Deal, the Marshall Plan, the Korean War, the Race to the Moon, the Vietnam War, the nest egg and Loan Crisis, Operation Iraqi Freedom, and NASAs lifetime compute combined.2 In the aftermath of such incredible market turmoil, frequent investors are left wondering how the... If you want to get a full essay, order it on our website: Orderessay

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