This Case is about RECESSION
PUBLICATION DATE: July 07, 2009 PRODUCT #: UV2551-PDF-ENG
The Financial Crisis of 2007-2009 The Road to Systemic Risk case solution
This case invites pupils to assess, based on the causes, specified substances, effects, and possible solutions of the fiscal disaster of 2007-2009. The assumption of a company professor preparing a slide demonstration dramatizes an evaluation of the fiscal disaster. Reviewing much of it, his data in graph form, the professor ponders the impact of leverage, risk management, and bonuses and the essential function of banks. His primary thesis is that the essential problem surrounding this disaster was the misjudgment of the dangers taken, with the result that risk management neglected to do its job of handling and curtailing danger as expected.