Credit issues a big topic this year?

How do you control for potential credit-related problems? That's a good question right now, as the annual meeting season gets underway. It's something that executives and compliance managers probably ought to get a grip on. While we tend to think of the credit meltdown as a financial industry issue, it has spread rapidly. Bristol Myers Squibb recently wrote down $275 million to account for its subprime-related exposure. The CEO of PricewaterhouseCoopers says more nonfinancial firms are at risk. So how do you model this risk. There is likely no financial control for this sort of risk. But the fair-value issue has been out there for many years. Still, it's better to start talking about this now.

For more:
- here's a Financial Times article