Even as the carnage at LehmanBrothers left thousands of employees stranded, the next generation of Wall Street hopefuls began filing back to class this month at business schools across the country. The storied banking giant’s demise was an illustrative lesson for the industry and for academics--one that may lead to lasting changes in business-school curriculums. "I predict that people will spend a lot more time than they used to learning about risk management and understanding the subtleties," saysAwi Federgruen, chair of theDecision, Risk and OperationsDivision atColumbiaBusiness School.
For more than half a century, business schools have taught the fundamentals of risk management—the study of policies and procedures to analyze and control risk —but the availability of more comprehensive electives is a relatively recent development, a direct response to the faltering U.S. financial markets.Enrollment in the University of Mississippi’s risk-management-and-insurance program, one of the oldest in the country, jumped to 130 students in 2007, up from just 19 in 1995.And the number of U.S. business schools offering a concentration in risk management nearly doubled between 2005 and 2007, according to theAssociation toAdvanceCollegiate Schools ofBusiness, while degrees in risk management are increasingly being offered at business schools around the globe. "Maybe this [crisis] will force a number of the business schools, including our own, to rethink whether we should make this part of the complete requirements," says Federgruen, referring to in-depth risk-management coursework, "rather than just counting on the students themselves to understand that this is material that they’d better learn. \