ntroducing the Risk awards. These are the first annual awards this magazine has presented, and we spent a considerable amount of time deciding which individuals and firms to give them to. Above all, the awards recognise innovation and excellence in the derivatives industry and in the science of risk management over the past year. The editorial staff of Risk also took into account the ability of firms and individuals to turn ideas into a track record of success and good service to customers.

We sought the counsel of many of the professionals, both on the buy and sell sides of the market, whose opinions we trust. But in the final analysis, the awards are entirely the subjective judgement of Risk and we are confident that they recognise some outstanding achievements.

Some decisions were easier than others. Some took a great deal of argument to resolve. We had a lot of ground to cover because Risk is a magazine with a number of constituencies. It is read by quantitative analysts, traders, corporate financiers, investors, chief financial officers and technology specialists.

So, innovation and excellence. But to what use? For many of the businesses Risk covers, 1999 was a difficult year. The volume of OTC derivatives trading contracted sharply in the first half of the year, partly because of the introduction of the euro. Margins were squeezed tighter and tighter. Proprietary trading went out of fashion at many investment banks as risk parameters were re-thought in the wake of the LTCM-inspired credit crisis of autumn 1988. Many of the emerging markets were subdued. The Y2K factor prompted a freeze on IT spending by banks.

One common thread that runs through the Risk awards is the ability to surmount these challenges. We were not looking for investment banks that were growing market share by throwing money at their business. Nor were we looking for risk managers who had simply created a new system of internal reporting.

The Risk awards will be an annual event from now on. We congratulate our first winners and we look forward to searching for their successors during the year ahead.

The following Risk writers have produced this awards section: Dwight Cass; Matthew Crabbe; Clive Davidson; Nicholas Dunbar; William Falloon; Tim Hargreaves; Alan McNee; Robin Lancaster. E-mail: risk@riskwaters.com

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