Economic value creation in finance has undergone a fundamental evolutionary transformation, says Financial Darwinism: Create Value or Self-Destruct in a World of Risk, a new book by Leo Tilman. Risk has become the dominant factor in how financial institutions create — and destroy — shareholder value. Amid complexity and uncertainty, the book shows, financial institutions must be redesigned in order to adapt to the new financial order and remain competitive.

Financial Darwinism convincingly demonstrates why the demise of the old financial regime was inevitable and why achieving executive, regulatory, public policy, and investment success requires radically new approaches to making strategic decisions.

Leo Tilman is President of L.M. Tilman & Co., a strategic advisory firm that serves governments, financial institutions, corporations, and institutional investors worldwide. Prior to founding the firm, Tilman held senior positions with BlackRock and Bear Stearns, where he was Chief Institutional Strategist and Senior Managing Director. He teaches finance at Columbia University and serves on the advisory board of Columbia’s Center on Capitalism and Society as well as on the board of directors of Atlantic Partnership. Tilman was honored by the World Economic Forum as a Young Global Leader, joining a select group of executives, public figures, and intellectuals recognized for their “professional accomplishments, commitment to society and potential to contribute to shaping the future of the world.”

Robert Huebscher, CEO of Advisor Perspectives, recently sat down with Leo Tilman to discuss the relevance of Financial Darwinism to the ongoing financial crisis and to the challenges facing financial institutions, investors, regulators, and policy makers around the world.

In your book, you differentiate between a static “old regime” and the current “dynamic new world.” What are the key differences?

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