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(bright music)

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- Since its beginning,
Moody's has committed

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to help its customers make
smarter decisions about risk.

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How has the landscape of risk evolved?

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And how has Moody's evolved in response?

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- Let me step back and talk
big picture about risk.

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The ability to understand, and
measure, and to manage risk

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really has changed
dramatically over my career.

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So back in the nineties,
the early nineties,

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when I was a buy-side analyst
at Fidelity Investments,

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risk software was just
beginning its evolution.

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Think, you had primitive
versions of Excel.

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You had research libraries
with, imagine this,

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librarians, CD ROMs, books, magazines.

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And the public internet?

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That was really, you know,
pretty much in its infancy.

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So risk analysis was more, you
know, artisanal, passed down.

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It was kind of like a guild.

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And the reality was information
moved much more slowly.

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We relied more on people, our
networks, the people we know,

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and even just, you know,
reading the newspapers

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and listening to the evening news.

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So today, thanks to technology,

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we have both the ability and also the need

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to see how risks are interconnected.

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And in fact, many of the risks

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we think about today
weren't even on the radar.

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Think cyber risk, hacking,

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environmental, social, governance,

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climate, supply chain.

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You know, back in the day
when you said "supply chain",

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people were really talking about,

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"Get the cost down as low as possible

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and get things, you
know, to market quickly."

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And that's very much different

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than what we're talking about today.

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For over a hundred years,

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as you think about
Moody's and its journey,

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our primary role in the risk ecosystem

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was issuing credit ratings for bonds.

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In 2007, we created Moody's Analytics

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as an unregulated business
to monetize the data

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that was in the orbit
of the rating agency.

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And coming out of the
great financial crisis,

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we started to experiment.

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We started to think about
exploring adjacent markets.

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And we asked ourselves
a very simple question,

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"How can we better serve our customers?"

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So we looked at commercial real estate,

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private company data, counterparty risk,

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and again, 10 years back,

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the then emerging risks of
ESG, climate, and cyber.

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So we imagined moving beyond leadership

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in credit risk to become
the trusted provider

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of global integrated risk assessment.

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(bright music)