All the Devils Are Here

Key takeaways:

- Risk/compliance are among the most important roles in a financial institution. They should not be silenced or sidelined.
- If something is too complicated to understand, avoid it.
- Don't get suckered into the new, flashy, sexy products. If you decide to explore new areas, don't invest more than you can afford to lose.
- Even the ‘smartest' people missed a lot during this crisis. Don't pretend to be smart to fit in. If something doesn't work or doesn't make sense don't be embarrassed to ask questions.
- When moving into new areas or developing new products, look for what could go wrong. Put aside your optimism for this. Think 30 moves ahead.
- Capital requirements are not your enemy.
- Look for connections and interdependency. You can run a great organization, but you are still exposed to the errors of your counterparties.
- Don't ignore warning signs. Always consider them.
- Exercise your pessimism muscles.
- Something can ALWAYS go wrong