The financial crisis of 2007-2008 has discredited business models in the banking and fund management industries. In Moorad Choudhry and Gino Landuyt argue that banks must realign their business models, implying a lower return-on-equity; diversifying their funding sources; and increasing liquidity reserves. On the investment side, the authors discuss how diversification did not reduce risk, but rather amplified it, and failed to stabilize returns. The authors conclude that the clear lesson from the crisis is to know one's risk. A lesson that is best served by concentrating on assets and sectors that you understand. Filled with in-depth insights and practical advice, will provide bankers and investment managers with a guide to realigning their businesses in order to prosper in the post-crisis financial markets.