At this time of financial crisis, the United States Government to do the biggest rescue since the 1929 crisis in the form of bailout or liquidity assistance to the troubled financial industry amounted to USD700 billion, equivalent to Rp6.500 trillion (compared with Indonesia's financial crisis in 1998-1999 which cost about Rp650 trillion). Help this bailout was decided by the long debate over the past two weeks, involving members of Congress and the president's office. What valuable lessons can be drawn from the financial crisis?
Risk Management
Good risk management and cautious behavior (prudential behavior) remains always required by any financial institution, including by major financial institutions like Lehman Brothers and powerful has ever been a consultant to the Indonesian economy.
Apparently weaknesses in risk management and prudent attitude is a major cause less incidence of financial crises in America. This situation is exacerbated by the exclusion of qualitative elements in risk management because of too much faith in the quantitative elements.
Even the crisis that occurred in the United States is also characterized by manipulative behavior, greed, fraud and corruption. For example unscrupulous financial institutions that earn a commission from each transaction is done. This is being investigated by law enforcement in the United States.
With this crisis we are made aware that we may not believe in the myth of the reputation or financial institution which has been great and famous "magic" like Lehman Brothers. Good risk management and a cautious attitude still needed in the management of public funds available to financial institutions.
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