Abstract
As risk professionals, we know that managing leverage is the heart of risk management. Leveraged businesses naturally tend to use excessive leverage. We deal with regulations that exist in order to dampen the tendency among insurance companies to become overextended during the underwriting “soft market.” We observed that hedge funds, investment banks and private equity funds used excessive leverage as the credit boom went on. We observed an attitude of laissez faire rather than a call for regulation.
Keywords: Enterprise Risk Management
Page
69-71
Year
2008
Categories
Actuarial Applications and Methodologies
Enterprise Risk Management
Publications
Risk Management: The Current Financial Crisis, Lessons Learned and Future Implications
