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jerryking : counterparties   4

Understanding SecDB: Goldman Sachs’s Most Valued Trading Weapon - WSJ
By JUSTIN BAER
Sept. 7, 2016

traders use the system to track how a position would have performed over the past year, how it might do in the future under different scenarios, and how the holding might alter their broader portfolio. They can also use the system to help determine a price to charge the trade’s counterparty.

But traders aren’t SecDB’s only users. The firm’s risk managers use the system to peer into positions held by a trading desk or business to determine aggregate exposures.

Every Wall Street firm has tools to run each of those functions. But SecDB’s power comes from its universal use throughout the firm, its flexibility to add new variables or new sources of information, and its ability to tap into all of Goldman’s data.
Goldman_Sachs  traders  Wall_Street  databases  counterparties  information_sources  SecDB 
september 2016 by jerryking
Taking Risk To the Marketplace
March 6, 2000 | Fortune Magazine | By Thomas A. Stewart.

* "You should always value the ability to move and change, because that creates options, and options are valuable,"
* Traditional risk management, with its emphasis on real property and financial events, isn't enough for knowledge companies, whose big risks are intellectual assets, such as brand equity, human capital, innovation, and their network of relationships.
* you have to know what's at risk-- which isn't always easy for intangible assets.
* Each intangible asset has a different risk profile.
*Thinking like a portfolio manager works for risk management as well as for strategy, says Bruce Pasternak, head of the strategic leadership practice at Booz Allen & Hamilton. In either case, adaptability is a cardinal virtue; the top goal is organizational flexibility. All-or-nothing bets like insurance have limited use in protecting cash flows from intangibles because their value is so uncertain, says Anjana Bhattacharee, director of Aporia, a British startup developing tools to manage those risks. Hedging also has problems. Says Bjarni Armannsson, head of the Icelandic Investment Bank in Reykjavik: "It's difficult to find a counterparty for intellectual risks." To hedge against falling gas prices, Enron can sell the risk to someone who fears rising prices, like a utility, but how do you hedge against a loss of expertise or brand equity

* Markets are full of risk, but it turns out that they're a lot safer than rigid structures. Intellectual assets and operations obey no one's command and are subject to discontinuous--i.e., quantum--change. There are four ways to respond to risk: Avoid it, reduce it, transfer it, or accept it. The one thing you can't do, if it's intellectual risk, is tie it up and subdue it.
all-or-nothing  Thomas_Stewart  risks  risk-management  organizational_flexibility  adaptability  binary_decisionmaking  intellectual_risks  human_capital  insurance  intellectual_assets  brand_equity  intangibles  networks  interconnections  discontinuities  expertise  portfolios  options  portfolio_management  cash_flows  generating_strategic_options  optionality  brittle  antifragility  step_change  counterparties  network_risk 
december 2012 by jerryking
The PNM-Wikistrat connection
June 22, 2010 | Globlogization | Thomas P.M. Barnett. Four
20-something entrepreneurs have created a start-up (incorporated 6 mths.
ago) that seeks to adapt the Wiki platform to a
competition-of-the-fittest-style generator of strategic planning within
organizations (companies, government agencies, etc.)...Strategic
consulting in the private sector requires--more than ever--some
connectivity to solution-delivery, meaning almost nobody is paying the
old top-dollar for PPT slide decks and reorg charts--only. Instead,
companies want your interaction to come with some technology solution
that simultaneously empowers them to deal with the issue in question.
Advice just isn't enough anymore.

Govts. as a whole struggle with these problems, and are always looking
for new tools to empower individual workers while connecting them to the
wisdom of crowds, whether it be fellow bureaucrats (where a tremendous
amount of wisdom truly resides) or with the citizenry (their natural
counterparty).
wikis  Thomas_Barnett  management_consulting  start_ups  Israel  Israeli  solutions  advice  counterparties  empowerment  government  tools  bureaucrats  wisdom_of_crowds  citizenry 
june 2010 by jerryking

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