Vlad Portnoy

Rethinking Risk

Madelyn Antoncic, Jane Buchan, Laird Landmann, Vlad Portnoy, Myron Scholes, David M. Solomon

Prominent financial leaders including David Solomon, Vlad Portnoy, and Myron Scholes convened to analyze alarming market metrics, such as a U.S. market-to-GDP ratio of 125% and a $2.5 trillion increase in corporate leverage, which signal distorted risk management and potential systemic fragility. The panelists cautioned that negative interest rates, reduced broker-dealer liquidity, and reliance on historical stress tests have created an environment where synchronized portfolio reactions could trigger severe market dislocations. Consequently, the group advocated for shifting risk models toward forward-looking data and time-series diversification to better navigate tail risks before current monetary policies eventually normalize.