Derman: Overreliance on modelling "the biggest sin"
Derman made his comment during his guest address, 'Surviving dangerous models', at Risk Europe 2009 in Frankfurt today.
Derman - who is also a co-author of the 'Financial modeller's manifesto', a document arguing for grassroots reform of financial modelling - sharply criticised the over-use of models by financial services executives. He said risk executives should approach models with "hubris, not idolatry". He added: "Idolatry is the biggest sin - it is when you start to get into trouble." Risk
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