Illusion of control : why financial crises happen, and what we can and can't do about it / Jon Danielsson.

Finance brings prosperity and danger. We use measurements of risk to try and control the dangers of investments while maximizing our growth. Current strategies rely on mathematical techniques and historical data to predict future risk, but ignore the human component, failing to take into account the...

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Bibliographic Details
Main Author: Daníelsson, Jón (Author)
Language:English
Published: New Haven : Yale University Press, 2022.
Subjects:
Physical Description:vii, 276 pages : illustrations ; 24 cm
Format: Book

MARC

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245 1 0 |a Illusion of control :  |b why financial crises happen, and what we can and can't do about it /  |c Jon Danielsson. 
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300 |a vii, 276 pages :  |b illustrations ;  |c 24 cm 
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504 |a Includes bibliographical references (pages 259-265) and index. 
520 8 |a Finance brings prosperity and danger. We use measurements of risk to try and control the dangers of investments while maximizing our growth. Current strategies rely on mathematical techniques and historical data to predict future risk, but ignore the human component, failing to take into account the nature of risk inherent in the system.0 Jon Danielsson argues that critical risk is generated from within, through the interactions of individuals and perpetuated by their beliefs, objectives, abilities, and prejudices. He asserts that the widespread belief that risk originates outside the financial system frustrates our ability to measure and manage it, and the likely consequences of new regulations will help alleviate small-scale risks but, perversely, encourage excessive risk taking. Danielsson uses lessons from past and recent crises to show that diversity is the best way to safeguard our financial system. 
505 0 |a Riding the Tiger -- Systemic Risk -- Groundhog Day -- The Risk Panopticon -- The Myth of the Riskometer -- Ideas Matter: Risk and Uncertainty -- Endogenous Risk -- If You Can't Take the Risk, Change Riskometers -- The Goldilocks Challenge -- The Risk Theater -- The Uniformity, Efficiency, and Stability Trilemma -- All about BoB: Robots and the Future of Risk -- The Path Not to Take -- What to Do? 
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