Extreme Risk Management: Revolutionary Approaches to Evaluating and Measuring Risk

Brenda Jubin submits:

Christina Ray has written an intriguing though somewhat frustrating book. Extreme Risk Management: Revolutionary Approaches to Evaluating and Measuring Risk (McGraw-Hill, 2010) draws in part on methodologies of the intelligence community and argues for their efficacy in managing financial risk. More specifically, she contends that causal models, coupled with expert knowledge, are better predictors of black swan events than statistical models that rely on

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