I’m still learning. A couple of weeks ago, I attended the Compliance Week conference in Washington, D.C. I learned new terminology — such as “flash crash” and “liar loans” — from the roundup of exceptionally powerful speakers. Much of the discussion focused on the U.S. Senate and House bills being reconciled to bring new regulation to the financial services industry. It is a fascinating time we live in.
Many of the breakout sessions dealt with ERM — clearly a hot topic at the moment. I’m surprised more attendees weren’t talking about the deep-water oil geyser in the Gulf of Mexico. Maybe the problem was just too unimaginable to discuss. Or maybe it was still too early. It seems the 24/7 news cycle can’t stop reporting on it now.
Do you wonder if the oil industry had deep water oil catastrophe in their risk inventory? I bet they did. I bet they even had plans to solve the problem. Unfortunately, the world is dealing with something that has never happened before, for which there is no easy solution. This is really an example of a convergence of a number of different risks. Individually, they can all probably be addressed — but when they crash into each other — that’s another issue altogether. And hurricane season has just started — which is sure to change the situation once more.
If prayers help — all involved in this crisis certainly have mine.
Posted on Jun 8, 2010 by Kiko Harvey
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