Financial Darwinism: New Book by Leo Tilman Reveals How Financial Firms Need to Adapt or Face Extinction

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Called "The Man Who Predicted This Crisis" by CNN International for showing why the demise of the old financial regime was inevitable, Leo Tilman, President of strategic advisory firm L.M. Tilman & Co., finance faculty member at Columbia University, and former Chief Institutional Strategist at Bear Stearns, explains that "The current financial crisis is the culmination of long-term evolutionary changes in finance." In his new book, Tilman introduces an evolutionary thesis about the tectonic financial shift that has taken place over the past quarter century. He then outlines an actionable decision-making framework, which he calls "Financial Darwinism" that demonstrates how firms must continuously evolve amidst genuine complexity and uncertainty in order to survive and remain competitive.

The world's political and economic uncertainties, exacerbated by a serious lack of financial transparency, can lead business leaders to feel like they may be virtually flying blind in a rapidly changing global economy. Leo Tilman offers some important tools to address the clear imperative of better strategic and systematic risk management.

In his new book, Leo Tilman introduces an evolutionary thesis about the tectonic financial shift that has taken place over the past quarter century. He then outlines an actionable decision-making framework, which he calls "Financial Darwinism" that demonstrates how firms must continuously evolve amidst genuine complexity and uncertainty in order to survive and remain competitive.

"It is not necessary to change. Survival is not mandatory." Astonishing losses and the demise of venerable institutions illustrate the relevance of this quote by W. Edward Deming to the world of modern finance, argues Leo M. Tilman, President of strategic advisory firm L.M. Tilman & Co., finance faculty member at Columbia University, and former Chief Institutional Strategist at Bear Stearns, in his new book Financial Darwinism: Create Value or Self-Destruct in a World of Risk (Wiley; November 2008; $29.95; 978-0-470-38546-3; Hardcover). Called "The Man Who Predicted This Crisis" by CNN International for showing why the demise of the old financial regime was inevitable, Tilman explains that "The current financial crisis is the culmination of long-term evolutionary changes in finance. Once-comfortable businesses face increased competition and lower margins, while time-tested investment and business strategies are threatened by disruptive technologies and globalization. Active risk taking is playing a greater role in value creation and, to that matter, value destruction. Success of executive, regulatory, public policy, and investment endeavors requires a radically new way of thinking and making decisions."

In this book, Tilman introduces an evolutionary thesis about the tectonic financial shift that has taken place over the past quarter century. He then outlines an actionable decision-making framework, which he calls "Financial Darwinism" that demonstrates how firms must continuously evolve amidst genuine complexity and uncertainty in order to survive and remain competitive. In the process, business strategy, corporate finance, investment analysis, and risk management are blended within a holistic approach in order to empower financial executives and investors.

This book is about change, and change is always difficult, indeed wrenching: institutions must be redesigned; outdated paradigms discarded; and corporate cultures redefined in the process. However, the alternative - the Darwinian failure to evolve - is far more painful. This is when capital markets, clients, and counterparties beat you to the punch and make difficult choices for you, setting in motion self-fulfilling prophesies that often lead to financial ruin.

William E. Brock, former United States Secretary of Labor, Trade Representative, and Senator, endorses the book's timeliness, "The world's political and economic uncertainties, exacerbated by a serious lack of financial transparency, can lead business leaders to feel like they may be virtually flying blind in a rapidly changing global economy. Leo Tilman offers some important tools to address the clear imperative of better strategic and systematic risk management."

Financial Darwinism is an invaluable road map to the new financial order and an essential guide to adapting and succeeding in it. It will help financial institutions and investors worldwide face modern-day challenges and create a lasting economic value amidst complex, uncertain, and constantly evolving business and market environments.

For more information about the book, please visit the website at financialdarwinism.com

About the author
Leo M. Tilman (New York, NY) is President of L.M. Tilman & Co., a strategic advisory firm that serves governments, financial institutions, corporations, and institutional investors worldwide. Prior to founding the firm, Mr. Tilman held senior positions with BlackRock and Bear Stearns where he was Chief Institutional Strategist and Senior Managing Director. Tilman teaches finance at Columbia University--his graduate as well as undergraduate alma mater. He is co-author of The Risk Paradigm (forthcoming from Oxford, 2009) and Risk Management (Wiley, 2000), editor of Asset/Liability Management of Financial Institutions (Institutional Investor, 2003), and contributing editor of The Journal of Risk Finance. He serves on the advisory board of the Center on Capitalism and Society at Columbia University and on the board of directors of Atlantic Partnership. Mr. Tilman was honored by the World Economic Forum as a Young Global Leader, joining a select group of executives, public figures and intellectuals recognized for "their professional accomplishments, commitment to society and potential to contribute to shaping the future of the world."

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Stacy Smith
John Wiley & Sons, Inc.
201-748-6569
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