Race to the Top

As highlighted in an ERM Current™ blog entry last week, Goldman Sachs’ CEO Lloyd Blankfein delivered a speech to the Council of Institutional Investors regarding his views on what contributed to the current financial crisis.  He offered a challenge to other financial institutions in his closing remarks below.

Though honest disagreements will occur, the best companies don’t shy away or selfishly frustrate efforts to compel better industry practices. These companies recognize that they are the first to benefit from better standards, especially if their business requires extensive dealings with partners or counterparties. But, we have to recognize a higher responsibility: to speak up, to draw attention to potentially destabilizing trends and to act like an owner responsible for the integrity of the system.

During the past several years, we have witnessed a “race to the bottom” in terms of poor decision making, lax risk controls and weak regulation.  Let’s hope Mr. Blankfein’s viewpoint signals the beginning of a new “race to the top”.

goldman_sachs

Advertisements

About Wheelhouse Advisors
Wheelhouse Advisors LLC is the publisher of The ERM Current™, an online publication and blog dedicated to providing the latest updates on current trends in Enterprise Risk Management & Control. Wheelhouse Advisors provides cost-effective Enterprise Risk Management & Control solutions to both large and mid-size corporations. To learn more about Wheelhouse Advisors, please visit our web site at www.WheelhouseAdvisors.com.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: