QuoteOriginally posted by: VegawizardQuoteOriginally posted by: rmaxQuoteOriginally posted by: Gmike2000Best risk managers are ex traders.I do agree with this on the whole, however to play devils advocate: you don't think that traders will always have a trading mentality, and hence you should hire people who have a risk management mentality?Ideally you need a thief to catch a thief. Traders understand the nuances of mark to market, mark to model, and other subjective variables and loopholes to game the system. I would agree that ex-traders would tend, on average, to make better risk managers.They might know the market and risks pretty well but not all of them are well organized, able to write clear policies, enforce the rules, deal with regulators, do proper documentation of their models, etc.
Last edited by jomni
on August 10th, 2009, 10:00 pm, edited 1 time in total.