Richard M. Steinberg

If you’ve watched the Discovery Channel’s “MythBusters,” you know that on occasion the show deals with what might be called risk-management issues. For example, the show has explored such compelling questions as: When faced with a shark attack, is it a good idea to punch the animal in the nose?  And, can a fire extinguisher […]

The “imperial CEO” has long been extinct on the American business landscape, replaced by independent corporate boards of directors who closely monitor a team-oriented CEO and senior management, provide needed advice and counsel, and, when necessary, give clear direction on what actions should and should not be taken. Right? Well, not exactly. It’s true that […]

Working with a range of multinational companies over the years, I’ve had the privilege of collaborating with knowledgeable senior executives and directors who “get” risk management. On occasion, however, I’ve encountered extraordinarily self-confident business leaders who spout what they consider truisms about risk management that are simply false.   In one such instance, a board […]

It’s now well known that large British bank Barclays admitted to manipulating the benchmark Libor rate over a four-year period to make trades more profitable and to look stronger during the financial crisis.   The bank moved quickly to settle with the U.S. Justice Department, the Commodities Futures Trading Commission, and London’s Financial Service Authority. […]

It was Jamie Dimon’s steady hand on the tiller of JPMorgan Chase, as he navigated the nation’s largest bank through a financial crisis that destroyed several of his peers and won him near legendary status. But now that reputation is taking a hit, as he struggles to bring JPMorgan through the rough seas of a […]

The head of the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations, Carlo di Florio, is a soft-spoken man, with a gentle demeanor and charming personality. But don’t mistake that mild-mannered charm for passivity.  di Florio and his staff bring a hard-nosed and rigorous approach to carrying out OCIE’s broad-based mission. Having worked with […]

Boards of directors generally comprise highly capable people, well aware of the need for careful judgment processes and who know the potential impact that poor decisions can have on the success of the business, shareholder value, and director liability. Notwithstanding this fact, opportunities for improvement in the judgment processes of directors are available. Corporate governance […]

For the last few years, the most common word used in the boardroom has been “risk,” but some directors are wondering if they are paying enough attention to the word that usually dominates boardroom discussion: “strategy.” Directors recognize that strategic oversight is at the top of their list of important responsibilities, right behind selecting the […]

At the end of December, the U.S. Federal Reserve gave the banking industry a holiday “gift”—proposed rules implementing provisions of the Dodd-Frank Act, with the goal of preventing failure of systemically important institutions. The proposal includes provisions that could have a profound effect on how boards and managements deal with risk.  The rules apply generally […]

If you watch NFL football on ESPN, you’ve probably seen the segment “C’mon, man!” where analysts such as Mike Ditka and Chris Carter shout “C’mon, man!” after showing clips of players making particularly “boneheaded” plays—plays that are really dumb or sometimes just inept. They’re funny, sad, or frustrating, depending on which team you’re pulling for. […]