“Perfect Storms” – Beautiful & True Lies In Risk Management
The role of risk management is poorly defined. Risk is misunderstood. Form rather than substance dominates. Risk models are flawed, sometimes fatally. Activity and achievement are frequently confused in modern times. In risk management, there is frenetic activity. It will be interesting to see whether in the crucible of reversing markets, there is achievement.
Perhaps it is best to heed Mark Twain’s advice: “Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.” In the attached paper I have examined the beautiful and true lies in risk management.
____________________________________________________________ Satyajit Das works in the area of financial derivatives and risk management. He is the author of a number of key reference works on derivatives and risk management. His works include Swaps/ Financial Derivatives Library – Third Edition (2005, John Wiley & Sons) (a 4 volume 4,200 page reference work for practitioners on derivatives) and Credit Derivatives, CDOs and Structured Credit Products –Third Edition (2005, John Wiley & Sons). He is the author of Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives (2006, FT-Prentice Hall), an insider's account of derivatives trading and the financial products business filled with black humour and satire. The book has been described by the Financial Times, London as " fascinating reading … explaining not only the high-minded theory behind the business and its various products but the sometimes sordid reality of the industry". He is also the author (with Jade Novakovic) of In Search of the Pangolin: The Accidental Eco-Tourist (2006, New Holland), an unique travel narrative offering passionate and often poignant insights into the natural world and the culture of eco-travel.
