Читать книгу Financial Risk Management For Dummies - Aaron Brown - Страница 8

In This Chapter

▶ Flipping coins and betting on possibilities

▶ Spinning the wheel in predicting outcomes

▶ Exploring scientific risk theories

Risk management is a quantitative discipline, which means that it works with models of risk rather than risk directly. Choosing the right model is crucial. Most people make errors in risk management because they’ve no quantitative model of risk. Experts, by contrast, often make errors by being wedded to an inappropriate model of risk.

Risk managers must understand the common risk models, especially their flaws. This chapter explains many of the risk models you can use to support your risk management decisions, and how to spot errors in existing risk management frameworks.