Leo Tilman

Leo M. Tilman
Leo M. Tilman
Born 1971 (age 46–47)
Residence New York City
Nationality American
Education Columbia University
Harvard University
Occupation President & CEO, Tilman & Company
Website lmtilman.com

Leo M. Tilman (born 1971) is an American financier, author, and a leading authority on strategy, risk intelligence, and finance. He currently serves as President and CEO of Tilman & Company, a global strategic advisory firm. Tilman was formerly an executive at BlackRock, [1] Capitol Peak, [2] and Bear Stearns [3] and adjunct professor of finance at Columbia University.[4] [5]

Tilman is credited with predicting[6] the global financial crisis of 2008-2009 by showing the unsustainable nature of global imbalances in his latest book Financial Darwinism.[7] In collaboration with Nobel Laureate Edmund Phelps, he co-authored a 2010 Harvard Business Review the First National Bank of Innovation [8] as a way to enhance U.S. economic dynamism.[9] In a 2012 European Financial Review article, he redefined risk intelligence and designated it “new essential competence” for companies and investors who aspire to create lasting value for stakeholders and society. He is the creator of the Corporate Risk Scorecard, a holistic view of a company’s business model and risk profile similar to a food Nutrition Label (Barrons)[10] and co-author of the pioneering “Brain as a Business Model” framework (European Financial Review, 2014).[11]

In recent years, Tilman was one of the main architects of a public/private partnership involving the White House Rural Council [12] and the Farm Credit System[13] that brought billions of private capital to innovative companies and projects.[14]

Tilman was profiled as a "Business Visionary" by Forbes[15] among “influential authors, decision makers, and thought leaders in the field of business” and named Young Global Leader of the World Economic Forum for “professional accomplishments, commitment to society and potential to contribute to shaping the future of the world.[16]”

Education and early career

Tilman received B.A. and M.A. in mathematics from Columbia University and executive education at the Kennedy School of Government at Harvard University and the Jackson Institute for Global Affairs at Yale University. Before founding Capitol Peak and Tilman & Company, Tilman was Chief Institutional Strategist and Senior Managing Director at Bear Stearns. He started his career at BlackRock.

Current appointments

Former appointments

  • Chairman, Capitol Peak Asset Management
  • Adjunct Professor, Columbia University
  • International Advisory Board Member, British American Business
  • Contributing Editor, The Journal of Risk Finance

Selected bibliography

Articles

  • Wanted: A First National Bank of Innovation - Harvard Business Review[18]
  • Risk Intelligence: A Bedrock of Dynamism and Lasting Value Creation - European Financial Review[19]
  • Taming Risk In a Volatile World - Directorship[20]
  • The New Risk Paradigm for Corporate Governance - Chief Executive[21]
  • “Wanted: A Corporate Risk Scorecard – Barron’s” - Barrons[22]
  • “Brain as a Business Model” - European Financial Review[11]

Books

  • Risk Management[23]
  • Asset Liability Management[24]
  • Financial Darwinism[25]

Financial Darwinism

“Financial Darwinism explains the tectonic shifts now underway in the investment world far better than any book I have seen to date,” writes David M. Rubenstein, co-Founder of The Carlyle Group. “Those who are interested in really understanding how financial markets have dramatically changed in the past few years – and how they are likely to change again in the next few years – would do well to read and absorb this important work by Leo Tilman.”

Tilman’s Financial Darwinism is based on the premise that today’s complex economic and financial landscape requires executives, financial professionals, regulators, policy makers, and investors to adopt a radically new way of thinking and making decisions. Global systemic financial crises, periodic astonishing losses, and ruin of once-venerable institutions serve as convincing evidence on what happens otherwise, necessitating a road map to the new financial order and an essential guide to adapting and succeeding in it.

Financial Darwinism analyzes the dominant global forces behind the tectonic financial shift that has taken place in finance of the past quarter century and then comprehensively explores the challenges facing financial institutions as well as the universe of their potential responses. Conceptually, it consists of two highly interrelated parts. The first one is the evolutionary thesis called Dynamic Finance. This thesis explains the origins and drivers of the profound changes in the global financial landscape. Tilman proposes that the basic key to understanding the behavior of modern financial institutions and capital markets lies in the recognition of the fact that the process of economic value creation in finance has undergone a fundamental transformation. More specifically, due to significant margin pressures on basic financial businesses, active risk taking has begun to play an increasingly dominant role how financial institutions create (and destroy) shareholder value. In order to demonstrate this, the book introduces the concept of risk-based economic performance that helps depart from the outdated accounting-earnings-inspired mental paradigm. Throughout, the dynamism of risk-taking and business decisions is emphasized as a distinguishing characteristic of the dynamic new world vis-à-vis the old financial regime.

Managing modern financial institutions is a task of enormous uncertainty, scope and complexity. Thus, the second part of this book uses this evolutionary perspective to introduce an actionable decision-making framework designed to help financial executives respond the ongoing challenges. Together, the decision-making framework, the evolutionary thesis, and the risk-based economic performance equation filter out the complexity of the financial world and give financial executives a set of tools and choices on how to create or enhance economic value. They help define financial institutions’ strategic vision that properly integrates customer-related and risk-taking decisions, thus unifying business strategy, corporate finance, investment analysis, and risk management. Lastly, they help determine an “optimal” way to implement the strategic vision using the entire arsenal of advanced financial tools. In the process, risk management naturally becomes the very language of strategic decisions.

Financial Darwinism which, in essence, is a prelude to risk intelligence, help financial institutions and investors deliver sustainable economic performance amidst complex, uncertain, and constantly evolving business and market environments.

References

  1. ↑ "Blackrock".
  2. ↑ "Capitol Peak". Capitol Peak Asset Management. Washington, DC.
  3. ↑ "Bear Stearns".
  4. ↑ "Columbia University". Columbia University. New York, NY.
  5. ↑ "Financial Darwinism". Industrial Engineering & Operations Research. Columbia University. November 6, 2008. Retrieved 2008-11-06.
  6. ↑ "Financial Darwinism: Create Value or Self-Destruct in a World of Risk". The Free Library. Retrieved 2 May 2012.
  7. ↑ "Financial Darwinism: Create Value or Self-Destruct in a World of Risk". Amazon. Retrieved 2008-11-10.
  8. ↑ "Harvard Business Review: Wanted: A First National Bank Of Innovation ". Harvard Business Review. Retrieved 2 May 2012.
  9. ↑ Phelps, Edmund (January 2010). "Wanted: A First National Bank of Innovation". The Daily Telegraph. America. Retrieved 2008-08-01.
  10. ↑ "Wanted: A Corporate Risk Scorecard". Barron's. Retrieved 30 September 2013.
  11. 1 2 ""Brain as a Business Model" framework". Retrieved 30 October 2014.
  12. ↑ "White House Rural Council Announces $10 Billion Private Investment Fund to Finance Job-Creating Infrastructure Projects in Rural America=24 July 2014". USDA. America.
  13. ↑ "Rural Infrastructure Opportunity Fund Offers Bounty of Capital=5 September 2014". Institutional Investor. America.
  14. ↑ "FACT SHEET: The White House Rural Forum= October 2016". The White House. America.
  15. ↑ "Evolutionary Pressures". Forbes. America. Retrieved 2 May 2012.
  16. ↑ "Leo Tilman". TheWorld Economic Forum. New York.
  17. ↑ "Denver Museum of Nature and Science". (Denver).
  18. ↑ Phelps, Edmund (January 2010). "Wanted: A First National Bank of Innovation". The Daily Telegraph. America.
  19. ↑ Tilman, Leo (April 17, 2012). "Risk Intelligence: A Bedrock of Dynamism and Lasting Value Creation". European Financial Review. America.
  20. ↑ Levick, Richard (May 27, 2011). "Taming Risk In a Volatile World". Directorship. America.
  21. ↑ "The New Risk Paradigm for Corporate Governance". Amazon. Retrieved 2011-01-03.
  22. ↑ Tilman, Leo (September 7, 2013). "Wanted: A Corporate Risk Scorecard". Barron's.
  23. ↑ "Risk Management: Approaches for Fixed Income Markets - Bennett W. Golub, Leo M. Tilman". Wiley. Retrieved 2014-07-23.
  24. ↑ "Euromoney Institutional Investor PLC: Asset Liability Management of Financial Institutions: Maximising Shareholder Value through Risk-Conscious Investing: Books: Risk Management & Insurance". Euromoneyplc.com. Retrieved 2014-07-23.
  25. ↑ "Financial Darwinism: Create Value or Self-Destruct in a World of Risk - Leo M. Tilman, Edmund Phelps". Wiley. 2008-12-11. Retrieved 2014-07-23.
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