Banc One's share price has been falling recently due to analyst and investor concern over the bank's heavy use of interest rate derivatives. Dick Lodge, chief investment officer in charge of the bank's investment and derivative portfolio, must recommend to the CEO a course of action to allay...

The need to manage risk is widely acknowledged throughout the corporate world, and a well-developed body of knowledge is available to guide efforts to do so. Implementation of principles into practice, however, is mixed, often due not just to a lack of the right skills, but also because of a...