BI for portfolio risk management is no longer optional

October 22, 2008 - Research I110

The failures of Fannie Mac, Freddie Mae, Lehman brothers, AIG, and Washington Mutual were caused only in part by sub-prime mortgages. Lack of visibility in the management of portfolio risk was also a factor. Would these institutions have failed if they had been aggressively using business intelligence (BI) tools to monitor the riskiness of their portfolios?