In a profession dedicated to identifying and managing uncertainty, there exists a puzzling contradiction: many managers actively avoid quantifying the very risks they’re tasked with. You probably know risk managers like that, we all do. While quantitative risk analysis forms the foundation of effective decision-making under uncertainty (see any textbook on decision science), it remains… Continue reading Stop avoiding the risk quantification elephant in the room
Tag: qualitative vs quantitative risk
Quant models overthrow traditional risk management: embrace or perish?
In my last job as a Head of operational risk and insurance, I needed a team of 3 quants to build risk models to support decisions, quantify expected losses and calculate expected shortfalls. In my current job, as Head of risk, insurance and internal audit, I can do all this with with 2 AI models,… Continue reading Quant models overthrow traditional risk management: embrace or perish?
