Ep 66: 99% of what you know about risk management is wrong (Alexei Sidorenko - Chief Risk Officer)
The Audit Podcast
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The Importance of Probability Theory in Risk Management
Risk is not a single point it's distribution. There are books dedicated kind of to the math side. Then there are books dedicated to the psychology side. Google risk perception, risk perception, I mean, it has risk in the title. That's the field of study which has two noble prizes in economics by Kahneman, Vernon Smith and Taller Richard Taller. They're all very good at perceiving risk and uncertainty when making decisions. And then there's the third aspect of risk management called decision science. These three collective studies on probability theory decision science and neuroeconomics give you so many compelling evidence to throw out a rem as just a bad idea.
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