CHALLENGE OF THE
RISK QUOTE: The greatest lesson in life is to know that even fools
are right sometimes.
—WINSTON CHURCHILL, BRITISH STATESMAN
RISK QUOTE: Never pick a fight with an ugly person. They’ve got
nothing to lose.
—ROBIN WILLIAMS, COMEDIAN
If the prospect of black swans brings a challenge to ERM, so does the 2008 global financial crisis. Before discussing the challenge, let us review the history of the crisis.
The crisis can be traced back to the dot-com frenzy of the late 1990s. The Internet, and the doors it opened, created opportunities to launch businesses that took advantage of new technologies. Changes were envisioned in consumer behavior, marketing, advertising, and communications. People believed that exciting investment opportunities were available to those who moved first and