“Risk management is no longer just the purview of financial services companies. Companies across a range of industries have designated chief risk management officers ... and are also re-evaluating their dependence on existing risk management tools. The process of recalibrating risk will likely lay the groundwork for a durable economic recovery.” --
Bernard Winograd, Chief operating officer, U.S.-based businesses, Prudential Financial Inc.
“After experiencing the crisis of the past year, many participants are re-entering the market. They are working to manage risk much more efficiently and effectively to ensure long-term sustainability.” --
T. Timothy Ryan, President and chief executive, Securities Industry and Financial Markets Association
“My perception of risk is heightened about how frequent these financial crises are and how little predictability there is as to when they will occur. Hopefully, it will drive home the idea for [investors] how important it is to, at some point, reassess your investments.” --
Robert Pozen, Chairman , MFS Investments
“Clients have learned through experience that sophisticated strategies and exposure to non-traditional asset classes carry significant risks, resulting in an expectation for more clear and candid communication from their advisers, as well as a demand for more straight-forward and transparent investment options.” --
Bill McNabb, Chief executive,
The Vanguard Group Inc.
“Along the way, we learned a lot. Low-probability, high-cost risks cannot be ignored, and you must do everything that you can to immunize yourself from these risks.” --
Frank Keating, President and chief executive, American Council of Life Insurers
“Risk management has [been] and will always be a critical part of protecting advisers' and brokers' practices and clients. The events of the last year have made [it] even more important.” --
Charles Goldman, President of institutional platforms,
Fidelity Investments
“The rapid market collapse, followed by the more rapid market rise, has underscored the challenges that some individuals have in thinking long-term. Unfortunately, many have focused on very short time frames, even expecting perfection in timing. This is business risk as opposed to investment risk.” --
Steve Lockshin , Chairman and chief executive, Convergent Wealth Advisors LLC
“Many introducing broker-dealer firms and independent registered investment advisers are expressing increased demand for high-quality risk management tools and business analytics to help them manage and grow their businesses in an operationally efficient manner.” --
Suresh Kumar, Managing director and chief information officer, Pershing LLC
“I think everyone's perception of risk has changed over the last year. As regulators, it is incumbent upon us to identify areas of risk, monitor and police them, while at the same time ensuring that regulation keeps pace with our dynamic markets.” --
Richard G. Ketchum, Chairman and chief executive, Financial Industry Regulatory Authority Inc.
“Financial professionals got a wake-up call last year, learning the importance of understanding risk in a portfolio. Liquidity and transparency, benefits of ETFs we've touted for years, are now the buzzwords of the day.” --
Lee Kranefuss, Chairman, iShares
“Advisers have been intensely focused on the needs of their clients, and rightfully so. For many, however, this has slowed new-business-development efforts — and that creates yet another risk. With the right people, partners, processes and technology in place, great client service and new client acquisition can coexist, and advisers can help today's clients while planning for their own futures.” --
Jim McCool, Executive vice president, Schwab Institutional
“With technology spending, we are spending on training and getting the most out of our current systems, as well as prioritizing on the larger projects and spreading them out.” --
Greg Friedman, Principal, Salient-Friedman Wealth Management, Founder, CRM Software Inc.
“When properly educated by their adviser, most clients can tolerate the risk that is inherent in financial markets. What they have a much harder time dealing with is uncertainty — the uncertainty of the government's involvement and the impact on our capital system is a good example — and we have had a fair amount of uncertainty over the past year.” --
Rob Francais, Chief operating officer, Aspiriant LLC
“It is clear from the events of the last 12 months that understanding tail risks is far more important than previously thought.” Robert Doll, Global chief investment officer of equities,
BlackRock Inc.
“I still believe in diversification, but with a much greater appreciation for fixed income in a portfolio. I also think there are some simple option strategies that can be used to lower portfolio risks and generate income. And this is something we will be talking about with our clients this year.” --
J. Thomas Bradley Jr., President, TD Ameritrade Institutional
“While stocks were crashing, [bonds were] crashing far harder, relative to their lower normal volatility. I did not expect the merits of diversification to evaporate so utterly during the strange weeks from mid-September to mid-November last year.” --
Robert Arnott, Chairman, Research Affiliates LLC
