Surviving the Storm -- D.E. Shaw's 1998 Crisis and Risk Management DNA

In 1998, D.E. Shaw lost $372 million and saw its capital drop from $1.7 billion to $460 million during the global financial crisis. Unlike Long-Term Capital Management, the firm survived and went on to build an $85 billion empire. This module explores what happened, how D.E. Shaw recovered, and how this crisis forged the risk management culture that defines the firm today. Candidates who understand this history can speak authentically about resilience and learning from failure.