title: Risk Management: Foundations For a Changing Financial World
author: Walter V. 'Bud' Haslett Jr. CFA
description: Risk management may have been the single most important topic infinance over the past two decades. To appreciate its complexity,one must understand the art as well as the science behind it. Andin order to do so, investment professionals must have a solidframework for understanding the theory, philosophy, and developmentof the practice of risk management.
zlib_text: Reading 31 
  Risk Management 
  by Don M. Chance, PhD, CFA, Kenneth Grant, and John R. Marsland, CFA 
  Don M. Chance, PhD, CFA, is at Louisiana State University (USA). Kenneth Grant is at Risk 
  Resources USA and the School of Professional Studies at Columbia University (USA). John 
  R. Marsland, CFA, is at Schroders Investment Management (United Kingdom).  
  Managing Investment Portfolios: A Dynamic Process, Third Edition, John L. Maginn, CFA, 
  Donald L. Tuttle, CFA, Jerald E. Pinto, CFA, and Dennis W. McLeavey, CFA, editors. © 
  2007 CFA Institute. All rights reserved. 
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  LEARNING OUTCOMES 
  The candidate should be able to: 
  a. discuss features of the risk management process, risk governance, risk reduction, and 
  an enterprise risk management system; 
  b. evaluate strengths and weaknesses of a company’s risk management process; 
  c. describe steps in an effective enterprise risk management system; 
  d. evaluate a company’s or a portfolio’s exposures to financial and no