Anatomy and prescription (TT DecJan09 p34-35)

As the smoke begins to clear from the collapse and near demise of some of the financial world’s biggest names this autumn, what lessons can be learned? And what steps might prevent a future repetition of the massive volatility? Some guidelines for the future were suggested recently by John Hull of the University of Toronto, the British-born professor of derivatives and risk management at the university’s Joseph L Rotman School of Management.