Risk Management and Implementation

Speech by Nobel Laureate Myron Scholes

Refer to the end of this article for video links of this event.

Noble Laureate Myron Scholes visited the Institute of Global Finance (“IGF”). Professor Scholes is currently one of the International Associate Researchers of the IGF. During his stay in Sydney, Professor Scholes gave a brilliant speech on risk management and also shared his views regarding the flexibility of risk management and crisis management. His speech approached the topic of risk management under two broad perspectives and seven major topics:

1. What we do regarding risk management:

  • Capital Allocation
  • Capital Structure Optimization Tools
  • Risk Optimization
  • How Much Risk We Should Take

2. How to implement a system of risk management:

  • Feedback System
  • Measurement (of Risk) System
  • Firm Structure and Compensation Policy

Relevant Domcuments:


Brief Bio of Myron Scholes:

Myron Scholes is the Frank E. Buck Professor of Finance, Emeritus, at the Stanford Graduate School of Business, Nobel Laureate in Economic Sciences, and co-originator of the Black-Scholes options pricing model. Scholes was awarded the Nobel Prize in 1997 for his new method of determining the value of derivatives. Professor Scholes is currently the Chairman of the Board of Economic Advisers of Stamos Partners. Previously he served as the Chairman of Platinum Grove Asset Management and on the Dimensional Fund Advisors Board of Directors, American Century Mutual Fund Board of Directors and the Cutwater Advisory Board. He was a principal and Limited Partner at Long-Term Capital Management, L.P. and a Managing Director at Salomon Brothers.

[Source: http://www.gsb.stanford.edu/users/mscholes]