The dangers of complexity

Risk analysis

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Complaints about complexity are hardly new, nor are they without foundation in fact. Since the dawn of the Industrial Revolution, the world has become progressively more complicated. While such complexity causes a degree of discomfort and frustration for everyone, most of us believe these negatives are far outweighed by the associated comforts and conveniences that technological advance makes possible. This familiar phenomenon can be observed in the evolution of financial derivatives

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