International Investing

The importance of risk managers having a final say in can’t be overstated. From Amarath to Enron, firms that allow traders and managers to bully the people whose job it was to say “no” put themselves at risk of a blowup.  From the IHT:

Goldman’s secret sauce, say executives, analysts, historians and industry observers, is an odd mix of a high-octane business acumen, tempered with paranoia and institutionally encouraged - though not always observed - humility.

“There is no mystery, or secret handshake,” said Stephen Friedman a former co-chairman and now a Goldman director. “We did a lot of work to build a culture here in the 1980s and now people are playing on the balls of their feet. We just have a damn good talent pool.”