One Thing Lloyd Blankfein Knows How to Do: Manage Risk

Nov 2, 2011
J. Webster
Comments Off on One Thing Lloyd Blankfein Knows How to Do: Manage Risk

In light of the downfall of MF Global, run by the former Goldman Sachs chief Jon Corzine, you have to give Lloyd Blankfein some credit, he knows how to manage risk and makes it his top priority. I can respect that.

That may be the special ingredient at Goldman. While the firm encourages risk-taking by its traders, it also empowers its risk managers — at other firms considered the back office — to constantly challenge even the most senior leaders to keep them from going over the cliff.

Lloyd Blankfein, Goldman’s current chief executive, loves to tell people that he spends “98 percent of my time thinking about 2 percent probabilities.” That is not something you hear from most bank chief executives.

(DealBook)

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