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But as the appetite for risk returns--and it always does--companies are promising long-lasting change. This time around, they'll handle it differently, they say. Banks are stuffing their boards with risk experts. Trade groups are circulating white papers on the need for risk-adjusted compensation all the...

Author: /time Magazine | Title: Reassessing Risk | 11/5/2008 | See Source »

That is exactly the sort of top-down control financial firms now say they want. Citigroup CEO Vikram Pandit vows to be a "hands-on participant" in risk management. In August, UBS chairman Peter Kurer broke the firm into three separate units partly because the old structure, he said, encouraged...

Author: /time Magazine | Title: Reassessing Risk | 11/5/2008 | See Source »

It is tempting to say that this time is different, that the pain has been so severe and ongoing, the lessons will be remembered. Four exchanges, with encouragement from the Securities and Exchange Commission and the Federal Reserve Bank of New York, have volunteered to create a clearinghouse for the...

Author: /time Magazine | Title: Reassessing Risk | 11/5/2008 | See Source »

The most high-profile attempt has been the Treasury Department's requirement that banks participating in its recapitalization program make sure senior executives' pay doesn't entice them to take "unnecessary and excessive risks that threaten the value of the financial institution." What exactly that means, though, has been lobbed...

Author: /time Magazine | Title: Reassessing Risk | 11/5/2008 | See Source »

But my favorite interface is Karaoke Party karaokeparty.com) where all the songs are free. (Granted, there are only 160 of them.) Since deep down, most karaoke addicts really want to be told how good they are, the site uses a Simon Cowellesque algorithm to score your performance. Co-founder Mats...

Author: /time Magazine | Title: Karaoke 2.0 | 11/5/2008 | See Source »

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