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- Since its beginning, Moody's has committed
to help its customers make smarter decisions about risk.
How has the landscape of risk evolved?
And how has Moody's evolved in response?
- Let me step back and talk big picture about risk.
The ability to understand, and measure, and to manage risk
really has changed dramatically over my career.
So back in the nineties, the early nineties,
when I was a buy-side analyst at Fidelity Investments,
risk software was just beginning its evolution.
Think, you had primitive versions of Excel.
You had research libraries with, imagine this,
librarians, CD ROMs, books, magazines.
And the public internet?
That was really, you know, pretty much in its infancy.
So risk analysis was more, you know, artisanal, passed down.
It was kind of like a guild.
And the reality was information moved much more slowly.
We relied more on people, our networks, the people we know,
and even just, you know, reading the newspapers
and listening to the evening news.
So today, thanks to technology,
we have both the ability and also the need
to see how risks are interconnected.
And in fact, many of the risks
we think about today weren't even on the radar.
Think cyber risk, hacking,
environmental, social, governance,
climate, supply chain.
You know, back in the day when you said "supply chain",
people were really talking about,
"Get the cost down as low as possible
and get things, you know, to market quickly."
And that's very much different
than what we're talking about today.
For over a hundred years,
as you think about Moody's and its journey,
our primary role in the risk ecosystem
was issuing credit ratings for bonds.
In 2007, we created Moody's Analytics
as an unregulated business to monetize the data
that was in the orbit of the rating agency.
And coming out of the great financial crisis,
we started to experiment.
We started to think about exploring adjacent markets.
And we asked ourselves a very simple question,
"How can we better serve our customers?"
So we looked at commercial real estate,
private company data, counterparty risk,
and again, 10 years back,
the then emerging risks of ESG, climate, and cyber.
So we imagined moving beyond leadership
in credit risk to become the trusted provider
of global integrated risk assessment.
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