Good Senate Risk Commentary you may have missed –
has Nassim Taleb VaR videos of congress testimony
and Rick Bookstaber’s VaR testimony link << read Rick’s pdf (quick read)
plus this thought from Nick Gogerty – .
.. My own opinion is that the best way to measure financial risk is to assume it is a function of concentration of opinion or belief. The more people, models, institutions etc. all believe the same thing to be true the greater the risk. .
Gogerty concludes –
My own opinion is that the greatest current systemic risks outstanding are:
- The dollar as safe currency, example last years lesson via the flight to quality leads to the maginot line behavior of today as the USD is now the darling of the carry trade.
- Basel II implementations leading to a “unified” framework for global banking risk.
read it all >> Nick Gogerty’s Designing Better Futures