Risk management today. Why it is different and what is needed to manage today. Good read.
Excerpt: Rapidly changing global conditions have been particularly disruptive to the more precise risk management methodologies that enjoyed the high watermark of confidence levels during the period of macro-stability after World War II. At that time, extraordinarily stable conditions provided an environment that lent itself to mathematical applications and the ability to forecast with higher degrees of confidence, notes Andries Terblanche, a professor at the Australian School of Business and chair of financial services at Big Four consulting group, KPMG.
Of course, the world has changed. Significant among the financial and economic changes have been a big increase in the number of floating currencies, a significant growth in the use of derivatives, higher levels of public debt and an increase in global capital flows, aided by new technology.