Interim Board members who have already accepted and appointments include Robert Jarrow, Charles Smithson, Donald van Deventer, Peter Tufano, and David Shimko. Others will be added in the coming weeks. The Interim Board is committed to building upon GARP's solid foundation and expanding its global franchise. Among other things, it will be exploring the development of an elected membership structure, formulating an industry code of conduct, and will review GARP's membership offerings with the objective of enhancing and expanding membership benefits.
GARP's future is and looks exciting. The enthusiasm already shown by the Interim Board can only translate into a membership organization that will be both rewarding and professionally necessary.
The complete text of David Shimko's speech is below:
"Good morning and welcome. This week's meeting represents one of our best opportunities as risk professionals to learn from our peers and hear from those who influence our industry. This was our original rationale behind forming these gatherings, and part of the very bedrock of GARP's reason for being. The organization was always about supporting our industry, giving us a focal point, a voice in business and a platform for standards to measure our professionalism. It is about improving our products and building, then sharing the best methodologies to delivering them.
GARP is a triumph of our industry, succeeding in all the ways intended at the outset. It did indeed become our voice, our representative to the outside world.
That will not and should not change.
But our structure may need to undergo some purposeful and introspective re-design, and evolve with the times and our needs. Lately, GARP has attracted controversy as it tried to restructure itself. Many of its members are confused about direction, wondering about the value of their membership.
We feel as you do. So we're going to do something about it.
Yesterday, the founders of GARP agreed to a Letter of Intent that will result in a change in management. I am pleased to address you as a representative of the new management team.
Our first step is to join with several of the wisest minds in and around our industry to think through the very best directions to take and issues to resolve.
Towards that end we are forming a Board. And I'm extremely pleased to announce that people we know and trust, and who have earned the profession's respect, already have agreed to serve: Distinguished individuals such as Robert Jarrow, Charles Smithson, Peter Tufano and and Don van Deventer will now share their thinking and help us set direction going forward.
Robert Jarrow is a senior fellow of the International Association of Financial Engineers and was elected Financial Engineer of the Year by that organization in 1997. He is the Ronald P. and Susan E. Lynch professor of Investment Management at the Johnson Graduate School of Business at Cornell University. Charles Smithson is a former ISDA board member and is the executive director of the International Association of Credit Risk Managers. He is currently a partner at Rudder Associates. Peter Tufano is the Sylvan C. Coleman Professor of Financial Management at the Harvard Business School and the Chair of the Finance Area. Donald van Deventer is president of theKamakura Corporation and author of Financial Risk Management in Banking. We will continue to solicit the best and brightest of our profession to serve the remaining posts on this interim board.
We'll deal primarily with the future, our code of conduct, bylaws, standards and practices, and how we can improve our industry through GARP and the services it currently provides and must enhance.
We'll consider the range of current offerings, such as publications, FRM support, and membership benefits and how we can add value to this suite of products.
And we will learn from the past. We intend to be inclusive, to be member-centric, to remain at the vanguard of our profession. And to be open and informative in all we do.
We are, in other words, putting a stake in the ground: GARP is committed to the betterment of the risk management profession, and will align itself to deliver those products and services which best respond to your needs towards success.
Decisions made in the past have divided us. As GARP sought to become a for-profit organization, a rift was created between those who wanted to return to the non-profit status, with those who held other opinions.
This division is simply antithetical to what GARP was created to do, which includes bringing us together as a profession.
And so we're looking at GARP's future with two simple, uncluttered objectives in mind:
--To maintain the highest standards of professionalism in a participatory
--And to represent and serve the industry well.
As today's news reveals weaknesses-whether human or procedural-within some of the most sophisticated corporations on the planet, such as Enron, Tyco or Global Crossing, our profession will come under increasing scrutiny and importance.
We cannot afford a stand-pat organization that doesn't meet the dynamism of the marketplace.
We must be governed by agreed-to principles and standards.
We must staunchly support a standard-bearer that can unite us under one flag, and that satisfies the highest goals of the profession.
With your help, and the insights of our Board, GARP will achieve that goal.
We will keep you well informed and seek your opinions as we deal with these challenges. We will be asking you to renew your dedication to GARP and the principles it stands for. We will be asking you for feedback, in person and by email. We will be asking you to join committees and to nominate and elect officers. As it has been in the past, your personal efforts will allow GARP to thrive in the future.
Thank you all for coming today, and for the time many of you have spent assisting GARP with its mission in the past. Thank you to the staff for pulling off an incredible conference in the face of uncertainty. We'll continue to depend on our partnership in the future."