Top on the list is the need for financial managers to go back to simple, basic, common sense risk management principles and practices:

1. Do not invest in an instrument or product that you do not understand, especially the more complex structured and derivative transactions.

2. Do not just go along with the decision to invest on the notion that someone else seems to understand so it should be ok.

3. Have an exit strategy. Know how easy it is to unwind a transaction should circumstances change and the cost of doing so.

4. Ensure that there is adequate separation of duties so that there are multiple layers before a transaction gets approved, especially the larger transactions.

5. Examine the risk of counterparties to the transaction and whether you are within your risk exposure limits for the counterparties.

6. Have you stress-tested your portfolio to ensure you are adequately capitalised to withstand losses from major adverse events? Remember the frequency of these so-called 'one-off' events is rapidly increasing and it seems the proverbial 'once in a blue moon' is now an annual affair.

7. Last but not least, put adequate monitoring mechanisms in place to ensure that processes are being adhered to and limits are not breached.