Many times in my career, I have seen traders and business leaders flying towards risk like moths to a flame. When some of them eventually blow up, recriminations fly. After all, it is easy to condemn such behaviour in hindsight and accuse the failed risk-takers of recklessness, incompetence and addiction to speculation.
There is, however, a more charitable explanation for why certain market players act this way, which also offers us an opportunity to look critically at the foundations of the mo
The week on Risk.net, December 9–15 2017Receive this by email