Ignorance isn’t bliss : Over-reliance on numerical estimates of risk

Today’s highly quantitative risk management industry is the product of simultaneous advances in computing power and finance theory since the 1960s.

Exponential increases in computation speeds have allowed academics and practitioners to create a wide range of mathematical models, able to process vast amounts of historical data and create large numbers of projections of the future.

While undoubtedly useful when used appropriately, the resulting tools (now ubiquitous across the industry) have created an over-reliance on numerical estimates of risk.

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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