The Doom Loop in the Financial Sector
And Other Black Holes of Risk
Publication Year: 2010
Published by: University of Ottawa Press
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The custodians of the Grand Library of Baghdad, one of the glories of the civilized world in the 13th century, might be forgiven for not having anticipated the day in 1258 when a band of horsemen from Mongolia consigned the entire collection to the waters of the Tigris, which, it is said, ran black with the ink leached ...
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My academic base is provided by the McLaughlin Centre for Population Health Risk Assessment at the University of Ottawa. I am very grateful to the director of the centre, Professor Dan Krewski, for his support and encouragement of my research and writing since I became affiliated with it in 2001. ...
Chapter 1 Black Holes of Risk
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Two important ideas are contained in the passage quoted above. First, in the process of seeking to control the risks that we recognize and understand—risks that are well described using formal techniques developed in the field of risk management—we should be aware of the possibility that, in this very process, ...
Chapter 2 Systemic and Super-Systemic Risk in the Financial Sector
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As a hectic series of meetings unfolded over a single weekend at the offices of the Federal Reserve Bank of New York in Manhattan in mid-September 2008, the core of the world’s banking system teetered on the brink of a complete meltdown. The blow-by-blow account of these meetings, and the months leading up to them, ...
Chapter 3 Controlling the Downside Risk
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Risk is conventionally defined as “the chance of harm,” but an additional proviso is important: in all forms of deliberate risktaking—whether playing sports, undergoing a medical procedure or starting a business—risk is the chance of harm that is assumed in pursuit of some desired net benefit. ...
Appendix 1 Fragility in Complex Systems and the “Tipping Point” Problem
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In a speech delivered in April 2009, Andrew G. Haldane reiterated and amplified the “robust yet fragile” theme, presenting it as a characteristic of many complex adaptive systems, such as tropical rainforests, and also adding some additional descriptive metaphors (Haldane 2009b, 9–10): ...
Appendix 2 A Basic Integrated Risk Management Frameworks
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Page Count: 190
Publication Year: 2010
Series Title: Critical Issues in Risk Management