RISK MANAGEMENT, THE GLOBAL FINANCIAL CRISIS, AND REGULATORY REFORM : LESSONS FOR ASIA AND RESEARCH AGENDA
The GFC started eight years ago. In this keynote address, I will look back with the benefit of the research conducted by financial economists over the last eight years to assess what we now understand about the role of governance, incentives, regulation, and risk management in the collapse of financial institutions in the West. Since the GFC, there have been important changes in the regulation of financial institutions. I will assess whether these changes have helped make the financial system safer, whether these changes are sustainable, and to which extent they have problematic side-effects. I will argue that the regulatory changes in the West should not be emulated by Asia and that regulators should focus on making the financial system a stable engine for growth rather than micro-manage trading activities that were not a cause of the financial crisis. I will then turn to lessons for future research.
Professor René M. Stulz
The Ohio State University
Everett D. Reese Chair of Banking and Monetary Economics, Professor of Finance
René M. Stulz is the Everett D. Reese Chair of Banking and Monetary Economics and the Director of the Dice Center for Research in Financial Economics at The Ohio State University. He has also taught at the Massachusetts Institute of Technology, the University of Chicago, and the University of Rochester.
He received his Ph.D. from the Massachusetts Institute of Technology. He was awarded a Marvin Bower Fellowship from the Harvard Business School, a Doctorat Honoris Causa from the University of Neuchâtel, and the Risk Manager Award of the Global Association of Risk Professionals. In 2004, the magazine Treasury and Risk Management named him one of the 100 most influential people in finance.
A recent study found that he was the sixth most often cited contributor to the top journals in financial economics from 2003 to 2008. He is a past president of the American Finance Association and of the Western Finance Association, and a fellow of the American Finance Association, of the Financial Management Association, and of the European Corporate Governance Institute.
René M. Stulz was the editor of the Journal of Finance, the leading academic publication in the field of finance, for twelve years. He is on the editorial board of more than ten academic and practitioner journals. Further, he is a member of the Asset Pricing and Corporate Finance Programs and the director of the Risk of Financial Institutions Group of the National Bureau of Economic Research. He is also a member of the Squam Lake Group.
He has published more than sixty papers in finance and economics journals, including the Journal of Political Economy, the Journal of Financial Economics, the Journal of Finance, and the Review of Financial Studies. He is the author of a textbook titled Risk Management and Derivatives, a co-author of the Squam Lake Report: Fixing the Financial System, and has edited several books, including the Handbook of the Economics of Finance.
René M. Stulz has taught in executive development programs in the U.S., Europe, and Asia. He has consulted for major corporations, law firms, the New York Stock Exchange, the IMF, and the World Bank. He is a director of Banque Bonhote, the president of the Gamma Foundation, and a trustee of the Global Association of Risk Professionals.