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Risk events often deemed "unprecedented" are typically extreme iterations of past occurrences, argues Clifford Rossi, Professor of the Practice and Director of the Smith Enterprise Risk Consortium. Comparing these to “Killer Bees,” he emphasizes proactive risk management, urging organizations to anticipate and mitigate low-probability, high-severity scenarios with robust strategies and resources.

Poor risk management practices eventually come back to haunt those organizations that fail to take a broad and proactive view at managing risk.

Michael Faulkender, Dean’s Professor of Finance at the Smith School, has been nominated as U.S. Deputy Secretary of the Treasury. A former Treasury economist, he played a pivotal role in shaping COVID-19 relief efforts and is a leading voice in financial policy research. His nomination awaits Senate confirmation.

Three Smith seniors were honored as Philip Merrill Presidential Scholars, recognizing mentorship’s impact. At a Nov. 1 ceremony, Abigail Manga, Adelina Seck, and Grayson Vintz celebrated their achievements alongside K-12 and Smith mentors, highlighting the program’s legacy of excellence.

Risk decisions often falter due to cognitive biases, underdeveloped decision-making processes, and overreliance on models. Clifford Rossi argues that robust frameworks and balanced decision structures are essential to navigate uncertainty effectively and mitigate poor risk outcomes.

The Smith School's Enterprise Risk Consortium introduces two mortgage risk indexes: the Mortgage Credit Risk Index (MCRI) and Mortgage Redtail Risk Index (MRRI). MCRI measures 3-5-year default risk on GSE-eligible loans, while MRRI identifies loans with high-risk factors, aiding lenders, investors, and regulators in assessing mortgage credit risk and adverse selection.

Clifford Rossi argues that the homeowners insurance market is unraveling due to rising natural disaster risks. He proposes a government-sponsored entity to centralize hazard insurance, improving risk management and financial stability.

The QUEST Honors Program at the University of Maryland attracts top students from business, engineering, and science disciplines, offering a selective, dynamic learning experience. With a 48% rise in applications this year, QUEST fosters teamwork, innovation, and leadership through experiential projects and interdisciplinary collaboration.

Josh Harris, managing partner of the Washington Commanders, shared leadership insights during the CEO at Smith event. He highlighted the importance of hiring top talent, controlling one’s narrative, taking calculated risks, and learning from failures to build lasting success.

The Smith School welcomes new faculty for Fall 2024. These experts will enhance the school's mission by teaching and advancing research in areas such as AI economics, business law, marketing analytics, and financial policy regulation.