November 2017
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Are We Acting on Data or Instinct?

We often act on bias, while telling ourselves we are acting on hard data.

We humans are not machines and our decisions are based on emotion as well as reason, let alone complicated systems and models.

“The absence in risk management of a simple mechanism capable of correcting cognitive biases has an immediate implication. If it is possible [...]

You’ve Assessed Your Risk. Now What?

Riccardo Rebonato questions what we expect to our risk analyses to tell us.

“There is another aspect that current risk-management thinking does not seem to handle in a very satisfactory way: how to go from probabilistic assessments to decisions. Managing risk in general, and managing financial risk in particular, is clearly a case of decision-making under uncertainty… [...]