http://www.washingtonpost.com/wp-dyn/content/article/2009/04/13/AR2009041302803.html
One of the world's finest financial institution Goldman Sachs reported a profit of $1.81 billion during the first quarter.
While most of the large financial institutions are being troubled this firm has showed its superior vaiability.
About a week ago, one more company delivered us the surprise.
Wells Fargo also made profit during the first quarter.
How happy can Warren Buffet be?
They have done their job in order to create value to the shareholders.
And there must been a lot of risk management involved in the processes.
Does this indicate that the economy is going uphill?
Today on AM750, I heard someone say that economy may be stabilizing.
However, I can not really agree with this comment.
It is just couple of the many firms that are doing well.
In addition, the article said that it can pressure those who are not as healthy to pusue the same acition taken by Goldman Sachs.
And it also states that this can cause a significant issue due to not conserving resources.
To be honest, I think many of the troubled firms can get over this crisis if they become conservative and perform "correct" risk management.
If the model they have is not giving them a return, they can even consider starting over from scratch.
It may cost them a lot initially. However, it might be beneficial for them in the long run.
Many risk managers say that the company must survive through the short run in order to see themselves in the long run.
I think this is very true when it comes to these types of situation.
Companies should carefully analyze their risk management strucnture.
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