Table of Contents

Introduction: A Risky Business ix

Acknowledgments xvii

About the Author xix

1 The Historical Context 1

2 The Rogue Trader 7

3 Genius Traders: Who They Are and How to Catch Them 19

4 Insider Trading 27

5 Price Manipulation Risk: The Big Unknown 37

6 The Mortgage Mess 45

7 Ponzi Schemes and Snake Oil Salesmen 53

8 Rogue Computer 63

9 Funding the Bad Guys—Winning the AML Battle 73

10 Litigation and Big Data Risk 85

11 Twitter Risk and Fake News Risk 91

12 Spreadsheet Risk: Should We Ban Excel? 95

13 Acts of God Risk 99

14 Cybersecurity— The Threat from Outside and Inside the Firewall 101

15 Turning the Tables on Risk 107

16 Building the Right Culture: Values, Organization, and Culture 113

17 The 360-Degree Risk Management Function 123

18 What We Talk about When We Talk about Risk 137

19 The Future Is Unknowable, the Present Burdensome; Only the Past Can Be Understood 147

20 The New Tools of the Trade 159

21 Cognitive Technologies 169

22 The Role of Government and Regulators in Managing Risk 177

23 Case Studies and Guiding Principles in Planning for Disaster 185

24 The Risk Management Society and Its Friends 191

25 Conclusion: Seven Traits for Successfully Managing Cognitive Risk 203

Index 207

About the Author

ANDREW WAXMAN is an associate partner in IBM's Financial Services Risk and Compliance consulting practice with over 20 years of experience, in the United States and the United Kingdom, helping financial services organizations manage complex business issues. Andrew has written on risk and banking issues in industry journals, such as American Banker and Wall Street and Technology, for many years.