Associate Director - Delivery


You may or may not know this, but financial institutions employ scores of exceptionally bright people with advanced degrees in math and physics to develop and maintain various financial models. Among those are models for financial risk management, which are very similar if not the same across the financial world and employ a well-developed mathematical apparatus.

These people, referred to as “quants”, are very well compensated. I mean, half a million a year is not uncommon. The question that naturally comes to mind is, ok, with all this mental firepower and the gaggle of people whose very job was to watch the risks, how come we are where we are?

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As many other industries, the world of finance is prone to this silly admiration of star performance where the person making money is placed above usual controls, and is so high on the pedestal that if he crashes, it will get awfully messy. It is not like the world of finance does not know what often happens.


Please read this interesting piece on the worst financial crisis ever faced at:

ProjectTimes - Project Management Community - Market Turmoil 2008; Two Lessons Learned

4th October 2008 From India , Mumbai
I really believe that it does not have anything to do with star power or decision making - it was basically a collapse of our value system where greed overtook smart decision making and led to systematically underestimating risk while increasing profitability.
Anand Kumar
6th October 2008 From India , Bangalore
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